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.
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 entry barriers when introducing ICT into their businesses. The objective of this
paper was to examine the ICT entry barriers on SMEs in Sri Lanka with special
reference to Matara District. The primary and secondary data were used to gather
information from SMEs. The primary data were collected using the survey method.
The population represented all Small and Medium scale Enterprises which
registered at Divisional Secretariat Office in Matara District in the year of 2009.
Among them fifty respondents were randomly selected as the sample and a
structured questionnaire was administered. The questionnaire was developed based
on past literature, and carried sixteen separate Likert scale questions. The
questionnaire of the study comprised of two sections. The First part covered with
basic information of the Small and Medium scale Enterprises and second section
focused ICT entry barriers on SMEs in Matara District in Sri Lanka. The secondary
data were collected from the previous research findings which are related to the
research topic. The study found various factors that are inhibiting entries of ICT on
SMEs such as lack of funds to install the information system, lack of infrastructure
and lack of awareness on ICT. 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.
