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Research Article Open Access

Nigeria SMEs Participation in Electronic Economy: Problems and the Way Forward

Abstract

For both developing and developed countries, small and medium scale firms play important roles in the process of industrialization and economic growth. Apart from increasing per capita income and output, Small and Medium Scale Enterprises (SMEs) create employment opportunities, enhance regional economic balance through industrial dispersal and generally promote effective resource utilization considered critical to engineering economic development and growth. The development of SMEs is seen as accelerating the achievement of wider economic and socio-economic objectives, including poverty alleviation. Unleashing its influence on the way traditional business is conducted hitherto is the phenomenon of electronic commerce (e-commerce). The Internet through its reduction in distance-related costs is seen by many as a potential source of economic revitalization. This Internet economy has continued to grow at an unprecedented rate. Thus, this paper focused on the extent of Nigerian’s SMEs participation in this Internet economy. This will be achieved by considering the conceptual framework of Internet/electronic economy, some applications of Internet/electronic economy, Nigeria SME participation in electronic economy, the benefits and limitations of electronic economy in general, the problems hindering Nigeria SMEs’ participation in electronic economy and finally pointing out the way forward.

Adekunle, Paul Adesola, Tella, Adeyinka

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