The Exploration of Nigeria Cyber Space As An Avenue for Small Businesses to Grow

The implementation of information and communication technology (ICT) in small-to medium-sized enterprises (SMEs) is vital for the socioeconomic development of an economy, especially in developing countries. (Leaders of SMEs incrementally use ICT-based electronic commerce to gain competitive advantage in the global marketplace (Despite the growth of ICT-based electronic commerce within SMEs in developed countries, the rate of ICT adoption within SMEs in developing countries has remained relatively low.

The low adoption rate of ICT by SME leaders in developing countries such as Nigeria has contributed to a low rate of economic development in these countries.

 SMEs are an integral part of innovation and growth in a dynamic economy; thus, SMEs have a vital role in job creation (Napitupulu et al.,2018; Niebel, 2018; Zafar and Mustafa, 2017). In developed countries, such as the USA and United Kingdom, SMEs account for over 99 per cent of employers and contribute over 50 per cent to the country’s gross domestic product (GDP); (Gbandi and Amissah, 2014; Tobora, 2014).

 In developing countries, such as Ghana, SMEs contribute approximately 70 per cent to the GDP and account for approximately 92 per cent of business (Zafar and Mustafa, 2017). In Nigeria, SMEs conduct 90 per cent of business in the country but contribute less than 10 per cent to the GDP (Gbandi and Amissah, 2014).

Growth in ICT adoption within both large and small businesses in developed countries had been significant (Niebel, 2018; Rahayu and Day, 2017). However, the ICT adoption rate within SMEs in developing countries has remained relatively low (Yunis et al., 2017; Rahayu and Day, 2017). 

Innovation in ICT has contributed to the improvement of organizational performance and the achievement of competitive advantage for organizations within developed and developing countries (Niebel, 2018). Global competitiveness and the need to stimulate growth are compelling reasons why leaders of SMEs need to adopt ICT (Niebel, 2018; Rahayu and Day, 2017; Yunis et al., 2017).

Advantages of information and communication technology adoption in Nigeria on small businesses:

Large and small organizations in developed and developing economies can rapidly become formidable competitors while using ICT to create competitive advantage and become market leaders (Mustafa, 2015; Rahayu and Day, 2017). 

Organizations can use ICT as the means to facilitate strategic planning, future research, and business forecasting for both process efficiency and effectiveness (Agwu and Murray, 2015; Keller and Von der Gracht, 2014). Adopting ICT impacts the flexibility of an organization, where companies whose leaders adopt ICT are more likely to perform better in the market and exhibit product or service differentiation (Tarute and Gatautis, 2014).

Leaders of SMEs have adopted ICT to enhance product and service innovations and create competitive advantage (Napitupulu et al., 2018; Wang et al., 2015; Zafar and Mustafa, 2017). ICT increase the efficiency of an organization and enables effective decision making to explore business opportunities and maximize benefits (Rahayu and Day, 2017).

 The adoption and use of ICT represents a fundamental avenue for organizations to compete and grow when properly exploited (Rahayu and Day, 2017; Tob-Ogu et al., 2018; Yunis et al., 2017; Zafar and Mustafa, 2017). Adopting new technologies rapidly in SMEs can help to create innovative products and compete globally (Rahayu and Day, 2017; Tob-Ogu et al., 2018; Yunis et al., 2017; Zafar and Mustafa, 2017).

Disadvantages of information and communication technology adoption in Nigeria on small businesses:

The benefits of ICT depend on how it is used; as a result, ICT could be a disadvantage to some in the same way it is an advantage to others. The use of ICT, particularly with online education provides access to unsupported and erroneous information which makes its difficult and confusing to discern facts (Talebian et al., 2014). 

Face-to-face interaction has been replaced by online learning and other online social media which fails to address learning preferences of some individuals (Steiner and Mendelovitch, 2017; Talebian et al., 2014). Some studies argue that the use of illustrations through ICT impedes the imagination and stifles creative minds (Steiner and Mendelovitch, 2017).

Out of 37million micro, small and medium scale enterprises (MSMEs) in Nigeria only a few have registered websites says a report by Small and Medium Enterprises Development Association of Nigeria (SMEDAN). The problem is the wrong notion that digital platforms are meant for large organizations only, while others argue that they do not have the expertise and finance required to manage such platforms.

 The COVID-19 pandemic has poked a finger in the eye of such arguments as small business owners are increasingly coming to terms with the need to have a digital foot print in the business of  the 21st Century, size has become irrelevant or at best a mild constraint.

Several businesses have  sped up efforts to own digital platforms as customers shift to the use of online malls to shop and do business, while others embark on digital transformation initiatives to ensure that they thrive within what has become known as the neconstraint

As a small business owner in the 21st century, you should have no doubts about having a digital presence. Here is why:

 

Brand Visibility

As a small business owner seeking to compete in a world already dominated by medium and large-scale enterprises, attracting customers is much easier when you are able to showcase your brand through digital platforms. With over 100million internet subscribers in Nigeria alone your presence online makes it easy for customers to connect with you, learn more about your products & services and take action easily. In addition, your digital platforms enable you continuously portray elements of your brand which distinguishes you from competitors.

 

Studies have shown that though shoppers may have their usual suppliers and vendors offline, they still like to conduct research online before placing an order. This is because customers often like to compare prices and seek options before making a decision. Thus, being amongst the businesses present where they generally make findings and seek clarity about various product or service of interest gives your business a higher probability of being patronized.

 

Control your Brand's Narrative 

With your own digital platform, the power is in your hands. You have control over the content you share and can define how you want your audience to see you and your business; which further leads to more engagement and increased brand sale.

In a digital-first environment, it is important for brands to control their brand narrative, and share the experiences of others using their products and services. According to Kaley Halliburton, brands that create compelling and meaningful narratives elicit much more social conversation, engagement, and ultimately, sales.

24/7 Lead Generation.

Regardless of how big or small your business is or the industry that you operate, an obvious benefit of owning a digital platform is that your business becomes accessible to anyone, anywhere and at any time. Your platform is like a show room that is open 24 hours daily and 7 days a week, compared to when you have only about 8hours daily to operate a physical store.

Essentially, with your digital platforms, you can constantly attract customers and spend less time having to explain details about your product/service to every customer that connects with you. All you have to do is have in place processes that enable you respond speedily to requests such as having auto-responses for your emails and direct messages.

 

Beyond the benefits of having a digital presence as explained above it is important to note that credibility, consistency and customer experience are key to ensuring your business gets the best from its digital investment.

 FRIDAY PRAISE ADAEZE

 OS/21A/1716