Computer literacy and use of ICT as key factors of micro-enterprise success

Abstract

The objective of this paper is to emphasize issues connected with micro-business financial success and adoption of information and communication technology (ICT) as possible factors to determine further organisational growth. This understanding is based on the results of an investigation conducted in Slovenia between May and December 2009 in 134 Slovene micro-enterprises. Data for the main study were collected via structured interviews with owners or top managers of micro enterprises. We used some demographic questions about the business annual turnover, computerisation, owner's characteristics and some questions about the financial investments in ICT. To visualize and define factors we proposed a research model of annual turnover dependency in micro enterprise. The research focused on characteristics of owners of the enterprise, investments in ICT and characteristics of enterprises' usage of available ICT in correlation to business annual turnover. The results indicate that adoption, the number and type of hardware and software are positively associated with the micro- enterprise success. An important factor is also formal education of the manager and/or owner and his or her computer and ICT knowledge and skills. We also found out that use of internet, eBusiness and number of used business software contribute to enterprise's success. We can confirm that micro-enterprise informatisation can be the basis for a healthy economy growth if adequate knowledge and skills are present. To increase growth in micro-businesses we can use this and additional factors (intentions to growth, size, annual turnover, industry type,…) as filters to separate potential growing micro-enterprises from others that represent more than 94% of all enterprises in country. When we defined target group we can start to encourage growth with knowing methods from best practices all over the world. Based on our survey and on the review of literature, recommendations have been given how to be more effective and efficient in encouraging the growth of micro-enterprises.