Tracking the diffusion and adoption of ICTs among SMMEs in the agribusiness sector in Tshwane, South Africa

Abstract

Small, medium and micro enterprises (SMMEs) are key catalysts for advancing inclusive growth and development in South Africa. Information and communication technologies (ICTs) have transformed and revolutionised the way people, governments and SMMEs operate in the modern world. This study sheds light on the diffusion and adoption of ICTs by SMMEs in the agribusiness sector in the City of Tshwane, South Africa. To achieve the aim of this study, the following questions had to be answered: (a) What role is played by ICTs to advance SMMEs in the agribusiness sector? (b) How can SMMEs in the agribusiness sector explore and address some of the challenges facing them? (c) In what ways can government support SMMEs? The study was informed by the diffusion of innovation theory in its attempt to respond to these questions. It targeted selected SMMEs and policy-makers from Tshwane municipality, and collected data using semistructured face-to-face interviews. Purposive sampling was used to select the participants. Data were analysed using thematic categorisation. The findings show that a variety of ICTs have been adopted by SMMEs to improve communication with their clients, but at a low rate of adoption. The most popular recommendations mentioned the need for sufficient funding support from government to help improve the business operations of SMMEs. The study concludes that sufficient government support is needed to assist SMMEs in developing and adopting the ICTs they need to operate efficiently. This calls for government intervention such as funding support and mentorship to help develop SMMEs. Most agribusiness SMMEs in the City of Tshwane are insufficiently supported, especially in the area of financial management skills. Therefore, the government should provide workshops and proper training on the financial aspects of business.