SAC Research

RuBIES acknowledges that information is now a very important tool in sustaining existing businesses and supporting the desire to create new ones. Information is now seen as the fourth business resource along with land, labour and capital and lack of information is attributed as being a major part of decision making uncertainty in SMEs. However, on the contrary ‘information overload’ can hamper sound decision making therefore businesses need tools to access information relevant to them and the means and knowledge to pick up the exact information they are seeking from the general flow of available information.  This thereby refines the essence of “right information” at the “right time” for the “right people” in the “right way” for the “right purpose”. Restricted access to “right” information, support and markets may limit people’s business opportunities, but the use of different ICT-solutions (e.g. internet, mobile, e-learning, videoconferencing) opens up virtual markets, training and information sources, allowing entrepreneurs to expand business possibilities etc.  Generally speaking the problem encountered by rural SMEs is not the mere lack of ICT-solutions but the fact that often the systems are too large and expensive for them and don’t meet their specific needs. Furthermore, information about the potential solutions often doesn’t reach rural SMEs, they are often not aware of the possibilities of ICT, they may not recognise the ICT-needs of their enterprises and they often lack the skills to use ICT.

In recent years there has been a proliferation of discourse giving attention to the “knowledge economy”, “information society”, “e-governance”, etc., as the exposure to and use of ICTs has become common place for many people and businesses.  Contemporary wisdom suggests that in order to live and work in this “information age” the ability to use ICTs is imperative with the internet being described as “the fourth major communications medium after word of mouth, the printed word, and broadcast media” (O'Neill,  1999).  The use of ICTs has changed the way in which many SMEs interact with customers, suppliers, advisers and government.  Governments throughout Europe are committed to e-government and digital access to on-line information, policies, and services and it has been found that rather than for conducting e-business “much of the use of the internet is for accessing more general contextual information” (Commission of the European Communities, 2004).

The significant research base in the field of knowledge management in business, offers an insight into the information requirements of corporations, companies as well as SMEs.  Information is now supplied to rural SMEs from a wide-variety of sources, through a variety of pathways and about a variety of topics.  Institutional networks provide assistance and support, helping transform the information acquired by rural SMEs into relevant and meaningful knowledge through exposure and experience. The diversity of needs and requirements of rural SMEs means that businesses and advisory agencies are increasingly using ICT solutions to help facilitate access to (geographically) remote specialists and specialist information that would otherwise be unavailable to them. Without question ICTs (such as e-mail, internet, CD-ROMs, etc.) have become a popular way to disseminate information to rural SMEs and Kraft (2004) suggests that “traditional sources of written communication have been increasingly replaced by electronic information delivery, due both to fiscal constraints and the need for rapidly updated information”. 

The internet appears to be the preferred tool for information dissemination and many argue that it allows information to be accessed without spatial constraints.  It has also grown rapidly as a communication tool with the use of instant messaging, teleconferencing, web-cams, voice-messaging, etc.  However, there is a growing body of research examining the ‘digital-divide’ (e.g. Selwyn, 2003, Malecki, 2003, Skerratt and Warren, 2003) and terms such as ‘information apartheid’, ‘information rich and information poor’ and ‘haves and have nots’ have evolved. There are clearly problems with internet connectivity by SMEs in rural areas (in comparison to their urban counterparts) in terms of broadband availability and the costs of connection.  Yet despite many commentators opposing the commonly used notion that ICTs have led to the “death of distance” it is, however, acknowledged that some of the spatial disadvantages of rural areas can be ameliorated by ICT developments (Skerratt and Warren, 2003).

As well experiencing internet connection problems many rural SMEs (and advisers) still find difficulties in accessing pertinent information on the internet.  Polsen and Gastier (2001) report that only with “patience, resourcefulness, organisation, tenacity, and a variety of search engines, was it possible to find university and other research-based information on many of the subjects of interest to (advisory) agents on the Web.”  Furthermore, Benbuan-Fich (2001) found that users of commercial web-sites could not find specific information 58% of the time, adding that there has been a lack of evaluation of the usability of web-sites by academia. 

Clearly many rural SMEs are using the internet to gather information but sifting out practical information from the growing plethora of data available on the internet is becoming increasingly problematic for user who are progressively becoming overwhelmed and overloaded with disordered information that is often irrelevant to their needs as “increased electronic access.....(makes it).....easier to get carried away and gather too much or include inappropriate sources” (Webster, 2003).  Information on the internet is often poorly presented, out-of-date, and is often duplicated in various guises which can lead to further confusion.  This can make on-line searches for information frustrating and time-consuming and challenges the premise that the internet provides immediate access to knowledge.  Users today may indeed be information rich because of this bombardment of data, but unless they can harness this information and make sense of it they will remain knowledge poor as. As Webster (2003) puts it, “Information is everywhere - good information is harder to find.”

Most rural SMEs have generic information and advice requirements in areas such as, law, accountancy, finance, management skills, technology, etc.  However, the intricate specifics for particular types of information vary widely according to the enterprise type, size, location, the nature of its market and also on the capabilities and ambitions of the business (owners/managers).  SMEs that are innovative and competitive require the ability to access, understand and utilise business information and emerging knowledge readily to reduce the risks and uncertainties they face.  These SMEs generate significant demands for external information (e.g. for new techniques, processes, products, markets) since most small businesses can not meet their information needs in-house and they may also lack the resources, skills or time required to obtain, sift and analyse information. The need / desire for rural SMEs to use ICT in business varies largely, but it is often lack of skills that is the biggest hindrance in adopting ICT based solutions. Some enterprises have doubts about the profitability of e-commerce or the applicability of ICT solutions to their specific business.  Most SMEs do, however, have internet access and some level of competence to use it (in some cases they may use family members to assist them).  Asked about the possibilities of internet, the SMEs mention fast flow of information, efficiency of customer feedback, intensifying of operations, networking and new business opportunities.

At this stage in the project our literature review highlighted that much of the research on the use of ICT in rural SMEs had concentrated on the acceptance, adoption and uptake of e-commerce and ICT technology (e.g., Grimes, 2004).  It was clear that the impact of changing from traditional sources of information to ICT based sources in rural SMEs has been largely overlooked in the discourse about the ‘information age’ and the ‘knowledge economy’.  Such research was needed as a lack of it meant that it was very difficult to establish the true role and value of ICTs to rural SMEs a means of accessing information and advice other than the value of business generated through e-commerce

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