THE EFFECT OF INFORMATION TECHNOLOGY SYSTEM ON THE GROWTH OF SMES IN NIGERIA
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ABSTRACT
This study was carried out to examine the effect of information technology system on the growth of SMEs in Nigeria using 40 selected SMEs in Ilorin, Kwara State as a case study. Specifically, the study was aimed at Evaluating the relationship that exist between information technology and the profitability of SMEs in Kwara state; examine the major constraints of information technology adoption by SMEs in Kwara state; and determine the effect of information technology system on the growth of SMEs in Kwara state. The study employed the survey descriptive research design. A total of 40 responses were validated from the survey. From the responses obtained and analysed, the findings revealed that there is a significant relationship between information technology system and the profitability of SMEs in Kwara state; SMEs in Kwara state are faced with constraints in the adoption of information technology system; and there is a significant relationship of information technology system on the growth of SMEs in Kwara state. The study therefore recommend sOwners of SMEs must take critical steps to support the adoption and use of ICT in their organizations by identifying the appropriate types of technology that meet organizations’ strategic objectives, identifying the cost and source of financing for ICT projects, hiring skilled ICT resources or train existing employees on using and supporting ICT projects, determining the appropriate leadership style for ICT adoption and organizational success and providing ongoing training and support for new ICT projects as business needs evolve. More so, Government need to put laws and regulations in place that support SMEs, provide tax incentives for ICT adoption by SMEs, offer financial incentives and loan guarantees to SMEs toward ICT adoption, support ICT training centers and take appropriate steps to promote and adopt ICT use within all government agencies. Most important, government leaders need to ensure leaders of SMEs have access to reliable infrastructure, including regular electricity, reliable telecommunication, good roads and other infrastructural facilities that would help reduce the cost of doing business, particularly in Nigeria.
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