Issues and Barriers Affecting of Information and Communication Technology on Small and Medium Scale Enterprises

Abstract

Small and Medium scale Enterprises (SMEs) are taken significant place in a booming economy. SMEs are contributed for approximately 1% of country’s GDP. Information and Communication Technology (ICT) is using electronic media which involving transactions using the internet, network and other digital technologies (Loudon & Loudon, 2007). Previous Researches have revealed that ICT brings a capable way for SMEs to meet their number of challenges arising from both internal and external environments, further it brings value added advantages for businesses to keep their stability in a competitive market. But, they are unable to enter the ICT perfectly, by transferring its business activities in to the electronic way, since they have to face vast number of issues and barriers when introducing or adopting ICT into their businesses. The objective of this paper was to examine the issues and barriers of ICT on SMEs in Sri Lanka with special reference to Matara District. The study was found out various factors that are inhibiting of ICT on SMEs in Sri Lanka. Majorly can be identified those factors as internal barriers and external barriers. More involvement of the Government together with the collaboration of SMEs is very critical in creating an ICT based business environment among the SMEs in Sri Lanka. This may help for establishing a strong SME sector and getting competitive advantages over the domestic and international rivals.