Abstract:
Despite the growth of ICT adoption worldwide, Ethiopian small enterprises continue to conduct
most of their business communications using traditional methods. The general objective of the
study was to identify the roles of ICT for the growth of small enterprises in Awi Zone, Amhara
region, Ethiopia. From this general objective, five specific issues were explored. Small enterprises
were sampled using multi stage sampling technique from five sectors proportionally to ensure the
role of ICT in business performance. The study used survey research and both primary and
secondary data collection methods were used to collect data from the study area. Primary data
were collected from 339 sample respondents using questionnaires and interviews using purposive
sampling technique. Descriptive research method is used, and the collected data was analyzed
both quantitatively and qualitatively. From the analysis of the collected demographic data
majority of small enterprise operators; have less than Diploma level education, age range was
between 25-35 years, 145(45%) were engaged in the trade sector, 167(51.9%) nature of business
was proprietorship, (89.8%) were established less than 13 years ago (1997-2008 E.C) in the study
area. In addition, awareness of ICT among small enterprises did not know much about the
knowledge economy (usage of ICT) to their business and that they know very little about ICT.
Uses of computer, degree of using ICT tools in the business, electronic banking was very low on
the other hand the importance was very high. Among Telephone, Internet, Postal Box and Fax;
Mobile was the most preferred ICT tool to communicate with customers and suppliers. ICT;
improved business communication, enabled better relationship, enabled be more efficient and
productive, enabled to reach more customers, cost reduction, coverage of wide geographical
area, customer satisfactions etc. are some of the benefits of using ICT. The driving ways of ICTs
contribution to the growth of small enterprises were: saving time, improving business
communication, decreasing cost of work, increasing efficiency of business, improving
organizational performance, reducing transaction cost, covering wide geographical market area,
building better relationships of customers and suppliers, and building survival of competition of
small enterprises are among ways of contributions of ICT to small enterprises. Lack of availability
of internet and network infrastructure, lack of training, resistance of end-users to ICT, lack of
knowledge in the areas of ICT, lack of experience to apply ICT in the business, lack of ICT
applicability to business and shortage of electricity, high cost of ICT materials, shortage of
money, absence of financial networks, poorly developed telecommunication infrastructure,
security concerns etc. are among the major challenges of using ICT service in the study area. In
general, the application of ICT in business was very low, but the benefit is high. However, the
study recommended that giving training, improvement in the ICT awareness habit of the society,
educating society, commitment of the government to facilitate the expansion of ICT infrastructure,
willingness among small entrepreneurs, cooperation in building infrastructure are the major
opportunities to use ICT industry in business activities of small enterprises performance