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UTILIZATION OF INFORMATION AND COMMUNICATION TECHNOLOGY
TO ENHANCE ENTREPRENEURSHIP IN
SOUTH-EAST, NIGERIA
A Ph.D THESIS
BY
OKEKE, NKECHI MERCY
PG/Ph.D/05/39663
DEPARTMENT OF ADULT EDUCATION
AND EXTRA-MURAL STUDIES,
UNIVERSITY OF NIGERIA, NSUKKA
SUPERVISOR: PROFESSOR. (MRS) S. C. NWIZU
JANUARY, 2014.
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TITLE PAGE
UTILIZATION OF INFORMATION AND COMMUNICATION TECHNOLOGY TO
ENHANCE ENTREPRENEURSHIP IN SOUTH-EAST, NIGERIA
A Thesis Presented to the Department of Adult Education and
Extra-Mural Studies, University of Nigeria, Nsukka, in Partial
Fulfillment of the Requirements for the Award of the Degree
of Doctor of Philosophy in Adult Education (Administration)
BY
OKEKE, NKECHI MERCY
PG/Ph.D/05/39663
JANUARY, 2014
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APPROVAL PAGE
This Thesis Has Been Approved for the Department of Adult Education and Extra-Mural
Studies, University of Nigeria, Nsukka.
By
________________________ ____________________
Professor (MRS) S.C. NWIZU
Supervisor Internal Examiner
____________________ ____________________
Professor P.N.C Ngwu
External Examiner Head of Department
____________________
Professor Ifeluni Ike C.
Dean of Education
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CERTIFICATION
This is to certify that Okeke Nkechi Mercy, a postgraduate student in the Department of
Adult Education and Extra-Mural Studies with Registration number PG/Ph.D/05/39663 has
satisfactorily completed the requirements for the course and research work for the Doctor of
Philosophy in Adult Education (Administration). The work embodied in this thesis is original
and has not been submitted in part or full for any other Diploma or Degree of this University or
any other University.
______________________ _________________________
Okeke Nkechi Mercy Professor (MRS) S.C. NWIZU
Candidate Supervisor
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DEDICATION
This thesis is dedicated to the Almighty God, who made the impossibility possible and to
my dearest mother, Mrs. Comfort Okeke an instrument in the hand of God.
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ACKNOWLEDGEMENTS
I would first of all express my profound gratitude to the Most High God for life and
protection all through this course. I thank Him immensely for grace to complete this programme
successfully. I would wish to express my deep appreciation to those who contributed to the
success of this work. My great honour to my supervisor, Professor (Mrs) S.C. Nwizu, my
professor , mentor, hero and giant whose continued guidance and constructive criticisms paved
way for the successful completion of this study. My Professor your labours are beyond measure,
may the Lord reward you exceedingly. My great honour to Professor (Mrs.) C. I. Oreh,
Professor (Mrs.) D. U. Egonu and Professor T. A. Ume for their sustainable support and
encouragement. I will ever remain grateful to Dr. (Mrs.) T. C. Ogboanya for reading through the
manuscript, offering useful suggestions and validating the instrument. I especially express my
appreciation to Professor F. A. Okwor for encouragement and validating the instrument. I would
like to thank Professor A. Ali, Professor (Mrs) E. Anyakaoha, Dr. C. C. Igbokwe, Dr. K. O.
Usman and Dr. O.O. Nwubani and Dr B.C.Madu for their useful contributions.
I will not fail to express my great appreciation to Professor P.E. Chugbu whose earnest
decision paved way for my graduation. My special appreciation to Dr (Mrs) U. Nwobi my
content reader at proposal and Dr (Mrs) U. Ebirim my content reader at Faculty seminar. My
thanks to Dr. S.C. Chuta and Dr. (Mrs) O.C. Eze for their editorial services. I will not fail to
thank Ven. C.A. Onyechi, Dr. (Mrs.) J. A. Okpoko, and Dr. (Mrs.) S. N. Obasi for their moral
support. My special appreciation to Dr (Mrs)F.O. Mbagwu for her encouragement and labour
toward my oral exam.
I will ever remain grateful to Mr. and Mrs. L. Okoro for their financial and parental care.
I will wish to thank Professor and Mrs. E. E. Agomu and Rev. S. O. Obeta, for their prayers and
encouragement.
May God reward Professor (Mrs.) E. Maduewesi for her encouragement, contributions
and financial support. My earnest appreciation goes to my research assistants Chibuezeany Ota,
Judith Okoro, James Ejike, Obinna Madu, Ogochukwu Okoye, Priscilla Enwerem, Blessing
Mokwe and Nwalia Chinedu for their tireless effort in administering the instrument. My
unalloyed gratitude goes to my mother, Mrs. C. Okeke for her love, understanding and financial
support. To my family members, Mr. C. I. Okeke, Mrs. F. N. Nnaji, Mrs. R. I. Chime, Mrs. P.
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A. Egbuna, Mrs. C.I.S. Ezokuoye, Mr. G. O. Okeke, Barrister (Mrs.) E. N. Onwudiegwu, Mrs
Chizoba Ugwu and Barrister O. E. Okeke for their co-operation and encouragement.
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TABLE OF CONTENTS
Title page -- -- -- -- -- -- -- -- -- i
Approval Page -- -- -- -- -- -- -- -- -- ii
Certification -- -- -- -- -- -- -- -- -- iii
Dedication -- -- -- -- -- -- -- -- -- iv
Acknowledgement -- -- -- -- -- -- -- -- v
Table of contents -- -- -- -- -- -- -- -- vi
List of tables -- -- -- -- -- -- -- -- viii
Abstract -- -- -- -- -- -- -- -- -- ix
CHAPTER ONE: INTROFUCTION Background of the Study -- -- -- -- -- -- -- -- 1
Statement of the Problem: -- -- -- -- -- -- -- -- 9
Purpose of the Study: -- -- -- -- -- -- -- 10
Significance of the Study: -- -- -- -- -- -- -- -- 10
Research Questions: -- -- -- -- -- -- -- -- 11
Hypotheses: -- -- -- -- -- -- -- -- -- 11
Scope of the Study -- -- -- -- -- -- -- -- 12
CHAPTER TWO: LITERATURE REVIEW Conceptual Framework: -- -- -- -- -- -- -- 13
ICT: -- -- -- -- -- -- -- -- -- -- 13
Entrepreneurship and Types of Enterprises -- -- -- -- -- 15
ICT for Creating Enabling Business Environment: -- -- -- -- 18
Enhancing Marketing of Goods and Services through ICT: -- -- -- 25
ICT for Staff Training: -- -- -- -- -- -- -- 33
Barriers to Utilization of ICT:-- -- -- -- -- -- -- 41
Theoretical Framework: -- -- -- -- -- -- -- 45
Related Empirical Studies: -- -- -- -- -- -- -- 47
Summary of Related Literature -- -- -- -- -- -- 50
CHAPTER THREE: RESEARCH METHOD Design of the Study: -- -- -- -- -- -- -- -- 52
Area of the Study: -- -- -- -- -- -- -- -- 52
Population of the Study: -- -- -- -- -- -- -- 53
Sample and Sampling Techniques: -- -- -- -- -- -- 53
Instrument for Data Collection: -- -- -- -- -- -- 53
Validation of the Instrument: -- -- -- -- -- -- -- 54
Reliability of the Instrument: -- -- -- -- -- -- -- 54
Procedure for Data Collection -- -- -- -- -- -- 55
Method of Data Analysis -- -- -- -- -- -- -- 55
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CHAPTER FOUR: RESULTS Presentation of Results: -- -- -- -- -- -- -- 57
Summary of Findings -- -- -- -- -- -- -- -- 68
CHAPTER FIVE: DISCUSSION, CONCLUSION AND
RECOMMENDATIONS Discussion: -- -- -- -- -- -- -- -- -- 69
Implications of the study for Adult Education -- -- -- -- 74
Conclusion: -- -- -- -- -- -- -- -- -- 75
Recommendations -- -- -- -- -- -- -- -- 75
Limitations of the Study -- -- -- -- -- -- -- 76
Suggestions for Further Research -- -- -- -- -- -- 76
REFERENCES: -- -- -- -- -- -- -- -- 77
Appendix A Distribution of Population of Medium and Large Scale
Enterprise by State -- -- -- -- -- -- 87
Appendix B Sample Distribution of Medium and Large Scale
Enterprise by State -- -- -- -- -- -- 88
Appendix C Utilization of ICT Questionnaire -- -- -- -- 89
Appendix D Validated Instrument -- -- -- -- -- -- 95
Appendix E Computation of Field Trial Test Using Cronback Alpha -- 107
Appendix F Letter of Introduction -- -- -- -- -- -- 108
Appendix G Training Package -- -- --- -- -- -- 109
Appendix H Data from which Means were Computed -- -- -- 111
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LIST OF TABLES
Table Page
1. Mean Scores of Utilization of ICT to Create
Enabling Business Environment - - - - - 58
2. Mean Scores of the extent of Enhancing Marketing of Goods and
Services through ICT - - - - - - - 60
3. Mean Scores of Utilization of ICT for Staff Training - - 62
4. Mean Scores of the Barriers to the use of ICT to Enhance
Entrepreneurship - - - - - - - 63
5. t-Test of Difference Between the Mean Scores of Medium and
Large Scale Enterprises on the utilization of ICT to create
enabling business environment - - - - - 64
6. t-Test of Difference between the mean scores of Medium and
Large Scale Enterprises on the extent of Enhancing Marketing of goods
and Services through ICT - - - - - - 65
7. t-Test of Difference between the mean scores of Medium and
Large Scale Enterprises on the Utilization of ICT for
Staff Training - - - - - - - - 66
8. t-Test of Difference between the mean scores of Medium and Large
Scale Enterprises on the Barriers to utilization of ICT - - 67
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ABSTRACT
The purpose of the study was to determine the extent of utilization of Information and
Communication Technology (ICT) to enhance entrepreneurship in South-East, Nigeria. Four
research questions were posed to identify the utilization of ICT to create enabling business
environment, boosting production of goods and services through ICT, utilization of ICT in staff
training and barriers to utilization of ICT in enterprises. Four null hypotheses were tested at 0.05
level of significance and were used to guide the study. The design used for the study was
descriptive survey and the instrument was structured questionnaire. The population of the study
was all the 1251 registered entrepreneurs of medium and large scale enterprises in the private
sector, from which the respondents, consisting of 723 were drawn. Mean and standard deviation
were used in analyzing the data collected and the criterion mean of 2.5 was used to judge the
responses as to whether they were high or low. Four null hypotheses tested at 0.05 level of
significance were upheld. Findings of the study showed that the utilization of ICT to create
enabling business environment were accepted and enhancing marketing of goods and services
through ICT. ICT such as web-based lesson, cyber guide and telecommuting projects for staff
training were often utilized while the utilization of virtual classroom and personalized courses
are minimal. The major barriers for utilization of ICT were customers incompetence in using the
technology, limited number of competent staff, and taxation of internet sales. Based on the
findings, recommendations were made which include that private enterprises should organize on-
the-job training and offer opportunities for in-service training to their staff to make them more
competent on the use of ICT, educational institutions should incorporate digital courses in all
levels of education to develop ICT compliance workers at the points of employment,
entrepreneurs in the South-East should develop digital networks to promote digital economy and
network of ideas.
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CHAPTER ONE
INTRODUCTION
Background of the Study
Entrepreneurship stirs up ideas that could enhance enterprises. This perhaps informed
why entrepreneurship is fundamental to generating new ideas and developing new business
opportunities (Shanghai, 2001). Ayeduso in Osuala (2004) stated that while the word
entrepreneur describes the person or the actor, entrepreneurship talks about the actions, efforts,
abilities, skills, processes or sometimes the business unit itself. Following the same opinion,
Inegbenebor (2006) said that entrepreneurship is about learning the skills needed to assume the
risk of establishing a business. It is about developing strategies and executing them with all the
vigour, persistence and passion needed. According to him, preparing for entrepreneurship
focuses on attitude and skill formation for the identification of economic opportunities,
feasibility analysis, business planning and making arrangements for the sustenance and growth
of the enterprise. Similarly, the Small and Medium Enterprise Development Agency (SMEDA,
2004) stated that entrepreneurship develops when a person organizes and manages a commercial
undertaking. SMEDA also noted that entrepreneurship combines strong character of diligence,
innovativeness, readiness to take risk, ability to sense opportunity, ability to mobilize human and
material resources, being goal-oriented and focused, preserving and dogged for growth and
excellence. Entrepreneurship is certainly critical in economic transformation. Entrepreneurship,
according to Ray, Adams and McMilliam (1990) is being able to discover innovations that can
enhance marketing of goods and services, create enabling business environment, staff training
and deal with barriers to growth.
To define enterprise, Hyper Dictionary (2009) stated that enterprise is a purposeful or
industrious undertaking, readiness to embark on bold new ventures and an organization created
for business ventures. In Nigeria, as in other countries, many variables have been applied by
agencies in the classification of enterprises. Eneh (2005) recognizes micro, small, medium and
large scale enterprises. His classifications includes the size of employees, the amount of capital
investment, annual sales turnover, total assets or a combination of these to classify enterprises.
Medium scale enterprises are those with over 50 million Naira but not more than 200 million
Naira or 101 to 300 workers. Obitayo in Eziama (2003) asserted that small-scale enterprises
possess a total investment of between one hundred thousand and two million naira. Similarly,
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Osuala (1993) viewed a small-scale enterprise as any manufacturing or serving industry with a
capital investment not exceeding N150,000 in machinery and equipments and employing not
more than fifty workers. Again Inegbenebor (2006) stated that micro or cottage industries are
those with one and ten workers, small scale industries with eleven and hundred workers, medium
scale enterprises with one hundred and one and three hundred workers while large scale
enterprises are with three hundred and one workers and above. Eneh (2005) said that most
enterprise jobs are in the service and manufacturing sectors. They include soap makers, bakers,
furniture makers, leather makers, printers, welders, vehicle repair and maintenance, electrical
services, fashion designers, hotels, banks, textiles, plastic and pharmaceutical enterprises.
Emphasizing on the importance of enterprises, Eneh (2005) stated that it is indisputable
that enterprises hold the key to national economic development because they create jobs, wealth,
alleviate poverty, promote equity, social security, encourage the culture of self–help and self–
reliance. He added that they promote enterprises, productivity, provide opportunities for careers
and skills development as well as rural and community development. Similarly, World Bank
International Finance Corporation Report in United Nations Development Programme (UNDP,
2007) maintained that enterprises are important because on the average, enterprises comprise
over 95 percent of the economy, the contributions of the enterprise to employment and the
countries’ gross domestic product (GDP) are by no means trivial. UNDP still reported that close
to 140 million enterprises in 130 countries employed 65 percent of the total labour force.
Enterprises are the frame work for economic growth and innovation. Moreover, Ike (2004) noted
that enterprises respond positively to social and free markets, creativity, innovation, promotion
of individual and group initiative, self-reliance and above all self fulfillment.
As affirmed by Ecorys (2007) whether enterprises be multinational, large or not, the
nature and the growing importance of the competitive advantage afforded by new technology,
together with trade, capital liberalization and growing pressures of competition are forcing
enterprises to exploit both technological knowledge and markets on an international scale.
Entrepreneurship gives rise to innovations. Nagy (2003) pointed out that investment in
Information and Communication Technologies (ICT) and use, can affect innovation. ICT
according to UNDP (2001), refers to the full rang of electronic technologies and techniques used
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to manage information and knowledge. In this study the term ICT is not referring to all the
media currently available but more restrictedly to the recent computer technologies, internet,
computer and cell phones.
ICT have become the modern-day strategy to capture the market because of the potentials
it can offer to enhance entrepreneurship. ICT has enormous potentials to assist economies in
achieving specific economic development goals. ICT has the ability to improve communication
and enhance the exchange of information and the role of communication in the success of any
enterprise cannot be overemphasized. As identified by Itegboje, Adigun and Oyeyinka (2001):
Communication is the soul of business. It is the life wire of
every organization. Communication is a process by which an
individual, group or organization shares information with
another for a definite purpose. In business management,
communication makes it possible for important processes and
functions such as planning, organizing, leading, supervising,
decision-making, delegating and motivating. p.307.
They maintained that communication involves budgeting, negotiations, representing and
controlling. Through the internet, the computer has made business communication in various
forms possible. Internet is meant for communication both within and across national boundaries.
The internet according to Patton (2001) is a world-wide communication matrix that provides
users with access to electronic mail, news, training, instruction, maps, computer files, games and
countless volumes of information on virtually any subject. The internet even links customers to
commercial web sites where one can compare and buy products without leaving home.
ICT has a great role to play to enhance entrepreneurship. Bartelsman and Hinloopen
(2002) pointed out that the use of ICT could have several impacts on productivity. It might help
more productive enterprises gain market share. The use of ICT may help enterprises expand their
product range, customize the services offered or respond better to client demand and to innovate.
Moreover ICT may help reduce inefficiency in the use of capital and labour by reducing
inventories. All these effects might lead to higher productivity. Investment in ICT might also
have benefits going beyond those accruing to investors in ICT. Bartelsman and Hinloopen (2002)
further stated that the diffusion of ICT may help establish networks, which produce greater
benefits which is spillover effects, the more customers or enterprises are connected to the
network. The spread of ICT may reduce transaction costs which could lead to a more efficient
matching of supply and demand and enabling the growth of new markets. Increased use of ICT
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may also lead to greater efficiency in the creation of knowledge. Where such spillovers exist,
they raise overall multifactor production (MFP) growth.
Furthermore, the Organization for Economic Cooperation and Development (OECD,
2000) pointed out that much is being done to improve the environmental performance of industry
through policies which induce reductions in general burden of taxation, and cost of essential
services. Comparatively, smaller enterprises, tends to be less aware than larger firms of
environmental externalities and of the legislation that governs their activities. Besides, these
smaller enterprises have fewer resources to invest in environmental improvements and
management tools that could make their operations more sustainable. According to them,
enterprises can fill market niches in the development and sale of environmental goods and
services. It becomes a formidable challenge to involve the full range of enterprises in working
towards sustainable solutions. This is where the ICT advances come in to provide the means for
governments and other stakeholders to reach, inform and influence enterprises.
Existing literature has proven that ICT, if well used for training has potential to aid
materials to be presented in multiple media for multichannel learning. It motivates and
engages learners in the learning process, brings abstract concepts to life and enhances
critical thinking as well as other higher levels of cognitive skills and processes. ICT in
training provides opportunities for learners to practice basic skills on their own time and at
their own pace while allowing them to use the information acquired to solve problems
within their environment. Access is thus provided to world-wide information resources
for instructors and learners alike, a platform for large scale information interchanges and
research development beyond geographical boundaries,(Haddad and Draxler 2001).
Furthermore, Love and Irani (2001) said that enterprises could often experience barriers
through lack of human technological resources needed for ICT and e-commerce. Especially
when enterprises have to focus on day-to-day operations and lack the time and extra resources
necessary to understand the benefits of new technologies. Even if they are aware of the potential
benefits of adopting ICT, they would still require know-how or qualified personnel to enhance
entrepreneurial operations. They claimed that enterprises may also lack managerial
understanding and skills for e-business. Successful integration of e-business requires many
enterprises to restructure their business processes, to change organizational structures and to
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redefine their core competence and positions in value chain. The professional advice of
Information Technology (IT) and e-business consultants could help them but enterprises may not
easily have ready access to them because of their relatively high costs.
As pointed out by Agbonifoh (2006) e-commerce is an on-line buying and selling of
goods and services via the computer without leaving the comfort of their homes or offices. E-
business is used to describe businesses run on the internet or utilizing internet technologies to
improve the productivity or profitability of a business. This function of e-business is referred to
as e-commerce and the terms are used interchangeably. Also, the Information Technology
Association of America (ITAA 2005) said that IT is the study, design, development,
implementation, support or management of computer-based information systems, particularly
software application and computer hardware. It deals with the use of electronic computers and
computer software to convert, store, protect, process, transmit and securely retrieve information.
When computer and communication technologies are combined, the result is information
technology.
As aptly pointed by UNDP (2007) ICT enhance enterprises efficiency, reduce costs and
broadens market reach both locally and globally. The uses of ICT are increasingly transforming
modern business by enabling the rapid, reliable and efficient change of large amounts of
information. Access to and the use of ICT by enterprises will lead to greater job creation,
increase public revenue and a general rise in the standard of living. Furthermore, ICT offers
enormous opportunities to reduce social and economic inequalities, particularly those related to
income generation, poverty reduction, education, health, environment and gender equality and
thus helps to achieve broader development goals.
Panos (2010) stated that ICT – based knowledge and products contribute directly to
wealth creation. Through this knowledge entrepreneurs use ICTs in a number of ways by
substituting phone calls for travel, which saves time and money and using ICTs to obtain
information on prices for their own produce and purchases. Duncombe and Heeks (1999)
opined that ICTs have done the most to reduce costs, increase income and reduce uncertainty and
risk. Phones support the current reality of informal information systems, they can help extend
social and business networks. They clearly substitute for journeys and in some cases for brokers,
traders and other business intermediaries.
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Donner (2006) said that the internet remains a great place to gather information about
competitors, find new products, communicate with customers via e-mail, order supplies,
advertise and to conduct a myriad of other formal business process. These functions are
spreading now to the developing world as a range of factors such as multilingual websites,
increasingly reliable connectivity, revised e-commerce regulations, and a growing density of
users make internet – enabled businesses more realistic. In these various ways ICTs can enhance
entrepreneurship unlike typewriter used in business which can perform limited tasks to improve
business efficiency.
Anyanwu in Okpoko (2004) reported that computer has contributed substantively to the
socio-economic and human development of all industrialized and developed countries of the
world. In developing countries the impact of ICT is gradually being felt especially in urban
areas. The rapid advancement of ICT developed during the last two decades of the twentieth
century has continued to change both the information and communication system in human
enterprises and in the daily lives of the people. Despite the potential contributions of ICT to
enhance entrepreneurship, there are still obvious disadvantages of none utilization of ICT in
business. The absence of ICT in business will lead to poor marketing of product, lack of access
to information and collaboration among entrepreneurs in the business world. Jide (2009) has
rightly pointed out that the disadvantages of lack of ICT skills need in Nigeria makes the need
for ICT user, professionals and skills more crucial now than ever. The enormous disadvantages
are hindering the effectiveness of ICT. Though digital literacy has become a necessity for all but
it may be that majority in Nigeria lack basic ICT user skills. Agbonifoh (2006) has remarked that
the word computer still elicits different reactions from managers of private enterprises. Each
person’s reaction depends on the degree of computer literacy. For those who are literate in
computers, the term conjures a world of clamoring opportunities waiting to be explored. They
see in the computer, not only opportunities for word processing without tears and do it yourself
desktop publishing of leaflets, posters, pamphlets and books, but also an avenue for fast-paced
world-wide communication on the world of information highway. Further, the computer offers
opportunities for simple and complex analysis of data, massive information storage and retrieval
and access to virtual libraries on world-wide web. While some managers are carrying on as
though the computer is not meant for them, others still rely on manual typewriter, manual
storage, retrieval and processing of data and files.
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In the same way, Igwe (2005) portrayed two critical issues, confronting the utilization of
ICT to be illiteracy and inadequate educational opportunities in Nigerian educational system. On
the other hand Olubamise and Jide (2007) opined that communications quality is low and ICT
penetration is still insufficient considering Nigerian’s size and population, the cost of broadband
is still a barrier, poverty, lack of awareness and access excludes the poor, rural dwellers and
private enterprises from ICT. Even if a determined entrepreneur manages to survive, there is still
the problem of finding a reliable e-commerce infrastructure that will safely and reliably handle
the electronic transactions without viewing the seller from Nigeria as high risk. There have been
limitations on what one can buy online. There are rigours associated with online shopping
systems and the restrictions in the global market(Ovia,2007).
ICT skills can be impacted to the adult managers through adult education which serves as
an up grader. Crompley in Ugwoegbu (2003) stressed that one of the quickest ways that
productivity can be improved in countries that are less developed is to make sure that adults are
trained when they are already on the job. This is to help adult population to adjust to a rapidly
changing world. In the same way Lowe in Ugwoegbu (2003) observed that adult education
adopts the posture that education is life not necessarily the preparation of an individual for the
unknown. This is why in adult education, attempt is made always to mobilize, train and educate
available manpower for their immediate improvement and utilization. In the same view
UNESCO in Ihejirika (2007) pointed out that adult education is a component of life-long
education which begins in the cradle and ends in the grave. The concept arises out of the
awareness of rapid changes in technology and institutions which in turn require human beings to
update their skills and knowledge in order to catch-up with modern events. Programmes geared
towards life-long education help the individual adults. Part of the goal of life-long education is to
offer adults broad opportunities for self-renewal and social advancement. Supporting the above
view Anyanwu (1987) pointed that adult education affects our economy in a number of ways.
Not only does it increase the flow of skills but assists people to acquire new techniques such as
ICT. It helps people to destroy the traditional attitude that impede progress and at the same time
links knowledge with methods of production. In recent times, it has been noted that traditional
crafts are dying away. As a result people need to be taught basic knowledge which will enable
them to learn about modern production methods and how to adapt themselves to these changing
techniques which appear during adulthood. In the same vein Eyibe (2005) noted that the training
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and retraining programmes in adult education will enable the adult learners acquire relevant
skills to do the productive work in the society. This is because this training and retraining
programmes are aimed at occupational training and retraining in vocational, technical,
agricultural and entrepreneurship skills. The objective is to prepare participants in self-
employment, entrepreneurship system or wage employment in factories or industries. Moreover,
David in Ihejiribka (2007) opined that adult education must be continuing as a means for each
individual to improve the insufficient education received during his compulsory schooling. It
must be a continuous process of adaptation of worker’s training to technological changes and the
resultant increase in the minimum of knowledge required. It is continuing as an opportunity
provided each citizen to assume widening responsibilities with ever increasing competence. It is
continuing as a factor for promoting personal affirmation in a society in which all roads are open
to the worker for a better, finer and more cultural life. Also Hebborn (2010) posited that the
concept of continuing education and training encompasses an emancipator function. Continuing
education contributes significantly both to ongoing individual development and to a sustainable
future for the economy and for society as a whole. It ensures the progressive acquisition of
know-how, skills and qualifications, while fostering new vocational orientations against a
background of changing occupational biographies. Moreover, continuing education is an
important factor for the economic development of a region and its attractiveness as a location for
business.
For Nigerians to be employable and entrepreneurial the demand is not degree or
qualification but innovative people who can contribute meaningfully to the economy and society.
It is against this background that this study seeks to find out how the utilization of ICT has
enhanced entrepreneurship in South-East, Nigeria.
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Statement of the Problem
In the past entrepreneurs use obsolete but cheaper technologies such as typewriter and
cyclostyling machines which are now filled with disadvantages in the present day of information
and communication technology. These has negative implications for boosting of entrepreneurial
skills. For example, with the use to this technologies error correction, communication, document
scanning and formatting are not possible.
However with the advent of ICT it has been found that entrepreneurial skills are
facilitated. ICT has great potentials in enhancing skills of entrepreneurs. It has facilitated
training through on-line learning and helped in the area of enhanced business environment. To
scan, organize and store documents are possible with computer but not with the old technologies
used in business by entrepreneurs. According to Chris (2012) the growth of personal computer
and computer networks continues to impact businesses both large and medium. Through
computer and internet connection entrepreneurs can perform administrative tasks like paying
your business bills on your computer, as well as marketing your business online, e-mail and
instant messaging allow for easy communication. Moreover Uchegbu (2002) pointed out that the
introduction and use of internet has caused an important revolution in communication and that is
capable of improving the way we communicate, study, contract and transact business. This
progress in business in noted as a result of progress in the ability to link up computers.
Despite these obvious advantages opinions from the background of this study still show
that entrepreneurs are not yet taping the benefits of ICT in enhancing their skills. These are
however opinions and there is need to verify the authenticity of the opinions. It is therefore the
problem of this study to verify the extent of utilization of ICT to enhance entrepreneurship in
South-East, Nigeria.
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Purpose of the Study
The general purpose of this study is to determine the extent of utilization of ICT to
enhance entrepreneurship in South-East Zone. Specifically, the study sought to:
1. Determine the extent to which entrepreneurs of medium and large scale enterprises utilize
ICT to create enabling business environment.
2. Find out the extent to which entrepreneurs of medium and large scale enterprises utilize
ICT in enhancing marketing of goods and services.
3. Determine the extent to which entrepreneurs of medium and large scale enterprises utilize
ICT in staff training.
4. identify the barriers to utilization of ICT by managers of medium and large scale enterprise
to enhance entrepreneurship.
Significance of the Study
This study is of great significance to private enterprises because the finding would
provide data that would make managers to became producers and creators in high value areas of
knowledge economy. The managers would be drivers and not consumers in the global digital
economy. It would expose the staff to new ways of working in the enterprise.
Government would understand the need to be proactive in exploiting ICT for enterprise
development. The government and international funding agencies would be interested in general
development of ICT in higher institutions.
Educational institution would also find that the study would benefit them in that it would
expose the challenge of globalization and information age for the transformation of the academic
system from traditional role of teaching, learning, research and development methodology, to
ICT application which is the latest revolution changing all aspects of human endeavour.
The study will enable adult education administration fill the gap of ICT knowledge in the
society through continuing and life long education. The findings of this study will have
significant effect on the way people live, work and play in the society.
Finally, future researchers would also benefit by identifying further areas to explore in
ICT.
11
Research Questions
The following research questions guide the study:
1. To what extent do entrepreneurs of medium and large scale enterprises utilize ICT to create
enabling business environment.
2. To what extent do entrepreneurs of medium and large scale enterprises utilize ICT in
enhancing marketing of goods and services.
3. To what extent do entrepreneurs of medium and large scale enterprise utilize ICT in staff
training?
4. What are the barriers to the utilization of ICT to enhance entrepreneurship by entrepreneurs
of medium and large scale enterprises in South-East Zone?
Hypotheses
The following null hypotheses were formulated to guide the study at 0.05 level of
significance.
1. There is no significant difference in the mean rating of entrepreneurs of medium and large
scale enterprises on the extent to which ICT are being utilized to create enabling business
environment.
2 There is no significant difference in the mean rating of entrepreneurs of medium and large
scale enterprises on the extent to which ICTs are utilize in enhancing marketing of goods
and services.
3. There is no significant difference in the mean rating of entrepreneurs of medium and large
scale enterprises on the extent of utilizing ICT in staff training.
4. There is no significant difference in the mean rating of entrepreneurs of medium and large
scale enterprises on the barriers to utilization of ICT.
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Scope of the Study
The focus of the study is on utilization of information and communication technology to
enhance entrepreneurship in South-East, Nigeria. This study covers the registered private
enterprises in South-East, Nigeria. The study focused on utilization of ICT to create enabling
business environment, enhancing marketing of goods and services through ICT, utilization of
ICT in staff training and barriers to utilization of ICT. The researcher did not cover other areas o
of ICT utilization since the researcher believes that such areas can be carried out by future
researchers.
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CHAPTER TWO
LITERATURE REVIEW
In this chapter, literatures relevant to the study were reviewed under the following sub-
headings:
Conceptual framework
-ICT
-Entrepreneurship and types of enterprises
-Utilization of ICT to Create Enabling Business Environment
- Enhancing Marketing of Goods and Services through ICT
-ICT in Staff Training
-Barriers in utilization of ICT
Theoretical Framework
Empirical studies
Summary of related literature
Conceptual Framework
Information and Communication Technology (ICT)
Computers and the internet are continuing to transform the economy and society, thus
making the role of information and communication technology (ICT) in fostering development
become more broadly acknowledged. According to Wade (2001) ICT is a techno-quick-fix for
solving development problems that have spanned generations. In the opinion of Wills (2001) the
internet is the largest, most powerful computer network in the world. It encompasses 1.3 million
computers with internet addresses that are used by up to 30 million people in more than fifty
countries.
According to UNDP (2001) ICT is basically information-handling tools which are varied
sets of goods, applications and services that are used to produce, store, process, distribute and
exchange information. ICT include radio, television and telephone and the new ICT of
computers, satellite and wireless technology as well as the internet. These different tools
combine to form our network world, a massive infrastructure of interconnected telephone
13
14
services, standardized computing hardware, the internet, radio and television which reaches into
every corner of the globe. ICT constitute an important sector of economic activity, achieving
high growth rates in developed as well as in developing countries: a platform for exchanging
data, information, knowledge, and a tool for implementing applications such as e-commerce, e-
schools or e-health. ICT can play a catalytic role as an enabler to development. Recent
development in technologies, reduction in prices, greater availability of networks and a more
user-friendly approach to technologies are strengthening the role that ICT can play in support of
development.
Nagy (2003) posited that ICT is becoming a powerful tool for mobilizing civil society
and the underutilized human resource. ICT is an all purpose technology. ICT, particularly the
internet, is a networking infrastructure that can connect, empower and coordinate as well as
deliver all kinds of services. He maintained that this networking infrastructure is also a delivery
channel for reaching the poor and remote areas with more responsive and cost effective public
services. The massive backlog of educational, health, extension and social needs in developing
countries are unlikely to be effectively and in a timely fashion addressed without the innovative
and strategic application of these new technologies. Given the profound impact of ICT on
productivity, product differentiation, competing in time and accessing markets, developing
countries must use ICT in order to leverage their competitive advantage and participate in the
global economy.
According to EUICT Task Force Report (2006) recent innovations in web based ICT
technologies mean that the provision of software-based services becomes a real opportunity for
economic growth for both small and large enterprises as the use of the internet becomes more
and more pervasive. Such services will increasingly be provided through service providers that
have the necessary networks and ICT infrastructure to host web services for many companies
and provide access on a metered pay-as-you-go basis. New systems architecture, new web
software and high-speed networking enable all this to happen on much more favourable
economic terms thus providing a real incentive for utilization by enterprises.
The transforming impact of ICT in business in the global economy, therefore, motivated
the researcher to determine the extent of utilization of ICT to enhance entrepreneurship.
15
Entrepreneurship and Types of Enterprises
Entrepreneurship is defined by Nwaokolo, in Osuala (2004) as the ability to set up a
business enterprise as different from being employed. It involves the acquisition of skills, ideas
and managerial abilities necessary for self-reliance. According to Steinhoff and Burgess (1993)
entrepreneurship occurs when an individual develops a new venture, a new approach to an old
business or idea or a unique way of giving the market place a product or service by using
resources in a new way under conditions of risk. He contended that success in enterprises and
entrepreneurship are closely related and cannot be separated. Supporting the same opinion Ray,
Adams and McMillian (1990) identified twelve significant contributions of entrepreneurship.
These include: (a) raising productivity through technical and other forms of innovation;
(b) constituting a powerful tool for job creation (c) facilitating the transfer of technology; (d)
playing a critical role in the restructuring and transformation of economies; (e) playing a
strategic role in commercializing new inventions and products; (f) helping to reduce the
ossification of established social institutions and (g) the concentration of economic power. Other
contributions according to them are: (a) stimulating a redistribution of wealth and income within
societies in ways that are economically positive; (b) breathing vitality into the life of large
corporations and governmental enterprises; (c) making enterprises more competitive and thereby
reducing both static and dynamic market influences; (d) creating new markets and (e)
facilitating expansion into international markets.
Buttressing the above points Ray (1998) stated that economies, through entrepreneurship,
can be made more productive, innovative, dynamic and internationally competitive in a cost-
effective manner. Still in the same view Tiffin and Osotimehin (1988) advanced five reasons
why entrepreneurship and technological innovation (ETI) should be considered important for
Nigeria and Africa as a whole. These reasons in their view, include that:
1. ETI is an effective factor that can lead to the development of the poor regions of the
community.
2. ETI can create a dynamic private sector that will diversify the national socio-economic
structure and reduce the need for government participation.
3. ETI does not require extensive government planning and the creation of much new
organizational structure.
16
4. ETI is consistent with the concept of appropriate technology and self-reliant
development.
5. Development agencies have interest in ETI.
Metcalf, Ramlogan and Uyarra (2003) maintained that entrepreneurship capacity refers
to the introduction of new productive combinations and innovations acting as driving forces,
which continually create new competitive advantages and opportunities for profit and growth.
Fatma (2005) pointed out enterprises as a dynamic force for export development, sustained
economic growth and job creation. Enterprises stimulate private ownership and entrepreneurial
skills. They are flexible and can adapt quickly to changing market demand and supply
conditions. They generate employment, help diversify economic activities and make significant
contributions to export and trade. The private sector consists largely of small and medium-sized
enterprises.
In the light of the above, Ayeduso (2004) observed that whatever legal business one does
for a living can be considered as self-employment or an entrepreneurship. This connotes that
entrepreneurship abounds in all spheres of human endeavour in sports, entertainment, arts,
engineering trades, building trades, beauty culture trades, leather works and business trade
among others. The nature of trade or occupation determines the class an entrepreneur belongs.
Ayeduso (2004) classified entrepreneurship into four groups as follows:
1. Mining and Agricultural Sector: Businesses in this occupation are mainly on the production
of raw materials either by extraction or basic preparing and selling of farm products. We,
therefore, have entrepreneurs in quarry business, pot making, fishery, piggery, goatry,
poultry, cattle rearing, horticulture etc.
2. Manufacturing and Construction Sector: Those engaged in this business make or grow crops
to be sold or engage in construction works. People are engaged in such business as soap
makers, bakers, porters carpenters, furniture makers, leathers workers, boat builders, printers,
architects etc. Dares (1998) enlisted other enterprises under manufacturing sectors as follows:
food production, textiles, wood products and fabricated metals industries, Pharmaceutical
firms, jewelry, weaving, beer brewing, welding and iron works.
3. Distribution Industry Sectors: Distribution has to do with the business of moving products
from their points of origin to where they will be used or consumed. Many activities and
17
institutions are involved in carrying out these functions. Most entrepreneurs that are involved
include the wholesalers, the retailers, commissioned agents, insurance brokers, bankers,
communication agents etc.
4. Services Sector: In the service industry we have artistes (musicians, actors, comedians etc),
professional athletes, medical and health officer, hoteliers, caterers, tailors, fashion designers,
typists, reprographer, computer operators, hair dressers, laundering, vehicle repairs and
maintenance, tinkering. These categories formed the population sectors for the study.
Enterprises do not operate in a vacuum. Their competitiveness can only be measured
within various types of market territories at the sub-national, national and supra-national levels.
The optimization of its capital resources such as finance, technology, and labour commands
their ability to penetrate each of these three market territories (UNCTAD, 2003). Metcalf,
Ramlogan and Uyarra (2003) maintain that competitiveness is embodied in the characteristics of
the firm through:
1. The current efficiency and effectiveness of the use of resources,
2. The willingness and the ability to relate profitability to growth of capacity through
continued investment, and
3. The ability to innovate in technology and organization and thus improve efficiency
and effectiveness of production.
Also Lall (2000) stressed that external competitiveness can be achieved by enterprises
through exports, sustaining diversification or better quality of production, upgrading technology
and skills and expanding the base of domestic enterprises to compete regionally and globally. An
enterprise is competitive in external markets depending on its ability to supply quality products
on time and at competitive prices and to respond quickly to changes in demand by building up
innovative capacities and market strategies.
In support of the above view Leeuwis (2004) opined that when we use the term ICT, we
are not referring to all the media available nowadays, but more restrictedly to recent computer
technologies. Examples of these technologies are the internet and the mobile phone. This study
restricts itself to the recent ICT like computer technology that can be used to exchange
information.
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Utilization of ICT to Create Enabling Business Environment
In the 1980s and 1990s, there was a growing appreciation of the importance of the
economic environment which included the general burden of taxation and the cost of essential
services. At the level of the firm the increasing importance of human resources and of new and
improved technology and innovation has come to centre stage (Fiorian, 2005). Lall (2001) stated
that a business environment can be seen from a policy perspective. This means that while macro
policies are needed which include ensuring a stable currency and exchange rates, controlling
inflation, promoting open markets by gradual cuts in tariff rates, providing effective
infrastructure and protecting property rights, successful industrial development is based on
market-friendly measures for increasing efficiency and interaction of meso-level institutions.
These measures should follow a decentralized, flexible, bottom-up and tailor-made approach.
United Nations Economic and Social Commission (UNESC) (2007) holds that creating an
enabling environment means addressing in a holistic manner, the various policy, legal, market
and social considerations that interact both at domestic and global levels to create fertile
conditions for ICT-based business.
In the same vein, Porter (2000) pointed out that:
The effectiveness of enterprises depends on the business environment
and the sophistication of company operations, including inter-firm
cooperation. Getting the business environment right can be looked at
from the policy and institutional point of view: are all the institutions
and laws in place to create an enabling business environment? Or
looked at from the enterprise level: what policies and support structures
are necessary for enhancing their capacity? p.5
United Nations Conference on Trade and Development (UNCTAD) (2005) followed-up with a
list of government policies such as:
1. The attraction of knowledge investment which must be among the highest priorities on
government policy for growth.
2. Promotion of knowledge creation and knowledge communities through tax, subsidy and
market incentives whenever possible and validating accounting rules to reflect human
capital stock creation.
3. Promotion of lower transaction costs linking regional and central government agencies with
efficient information systems.
19
4. Promotion of all IT software programming workshops and seminars that benefit enterprises
and agro industrial sectors so as to make non urban population comfortable with its use
through soft loans, direct subsidies or tax breaks.
5. Promotion of better knowledge transfer systems together with the telecommunications
industry by fostering efficient communication infrastructures at accessible cost so as to
allow for intensive use of internet virtual libraries and real time conferencing for
educational purposes by universities and other similar institutions.
6. Promotion of inferential treatment of all purchases of computer hardware of enterprise
business located in special economic zones and industrial parks.
7. Intensification of the promotion of technology parks and strategic alliances with world
class technology and knowledge organizations, so as to serve as breeding grounds for
future IT professionals.
8. Promotion of access to information technology (IT) and learning techniques to all
population sectors from their first years of schooling.
UNCTAD (2001) on the other hand, emphasized two different kinds of technologies
which are critical to enterprise development in today’s highly technological environment. These
are industrial technology (IT) and information and telecommunication technology (ITT).
Promoting industrial technology for enterprises is important because it is a channel for the
improvement of productivity and quality of the product. The application of IT is also critical for
use in the existing technology centres run by universities and government. Unfortunately, many
technology centres are under-utilized and, even the existing industrial centres, do not update their
technology. Another potential area for technology development is relocation of replaced
technology into less developed regions in order to reduce cost of new investment, and also
provide modalities for transfer of skills to the receiving enterprises.
On the other hand, UNCTAD (2005) observed that Information and Telecommunication
Technology (ITT) is very critical to enterprise development in that it brings access to many
support centers and the global market. It further stated that:
different types of ITT programmes have been prepared e.g.
modernizing ITT facilities for credit cooperatives and the
centre for development of enterprises. The government is
also providing assistance programmes to enterprises in
applying ITT. Private ITT networks are also growing.
(p.135).
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On the role that governments should play in view of the enterprise role in economic
restructuring, OECD (2000) suggests that they should above all,
promote entrepreneurship, facilitate firm start-up and expansion and
improve access to venture capital and other types of financing. The
governments are now fostering the development of secondary stock
markets to allow easy entry and exit for venture investors, easing
taxes on capital gains and other dividends and allowing greater use
of stock options as compensation in small firms (p.6).
OECD (2004) emphasized that reducing the regulatory burden on firms can be one of the
greatest spurs to entrepreneurship. Problems stem from regulatory systems developed to serve
the needs of large firms and the cumulative pressure of regulatory requirements. Enterprises
identify high compliance costs, extensive and complicated paperwork and economic regulations
that prohibit certain activities as the most onerous burdens they face. Countries are now reducing
paperwork and bureaucracy, minimizing administrative burdens, streamlining procedures and
reducing compliance costs for enterprises. At the same time the relatively weak bargaining
power and generally poor liquidity of enterprises make them strongly dependent on regulatory
frameworks that guarantee the reliability of transactions and secure orderly playing rules in the
economy.
On the issue of environmental improvement, OECD (2000) is of the opinion that
enterprise clusters should be encouraged in order to enhance enterprise performance and
competitiveness. All things being equal, small firms working in clusters can attain the
advantages of large firms while retaining the benefits of specialization and flexibility. Small-
firm linkages can be fostered by local, regional and national governments through the
frameworks for public or private and inter-firm partnerships. Generally, government
involvement in building clusters is indirect since it is concerned mainly with supporting skills
development and freeing up resources while overcoming constraints to greater enterprise
interaction. In the same view OECD (2001) stated that enterprise units or agencies are charged
with promoting small business development by providing capital, reforming fiscal practices,
reducing administrative burdens, providing management and skills training, improving
information dissemination and increasing access to markets. Among the programmes to increase
the technology base of enterprises are provision of Research and Development tax credits, loans
or grants for innovative activities and technology diffusion schemes.
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To create an enabling environment conducive to the growth and development of
enterprises, the International Labour Organization (ILO) (1998) stated that the members should:
(a) Adopt and pursue appropriate fiscal, monetary and employment policies to promote an
optimal economic environment, in checking inflation, interest and exchange rates, taxation,
employment and social stability.
(b) Establish and apply appropriate legal provisions as regards property rights, including
intellectual property, location of establishments, enforcement of contracts, fair competition
as well as adequate social and labour legislation.
(c) Improve the attractiveness of entrepreneurship by avoiding policy and legal measures
which disadvantage those who wish to become entrepreneurs.
Again World Bank (2005) stated that public policy is the tool by which the government
can help to create an environment and remove barriers for businesses to adopt ICT. The
government should take the following steps to provide a supportive legal and regulator
environment for e-business:
a) Create appropriate environments for ICT access and use, such as liberalizing markets to
expand and improve network infrastructure. Increase liberalization and competition in
ICT markets to stimulate investment in telecommunications, such as broadband access.
b) Develop e-security policies and programmes and provide supportive legal and regulatory
environments. The government should set up a regulatory framework for trust, security,
enforcing authentication mechanisms and combating cyber crimes, which will encourage
business use of ICT. Specific policies include low-cost online dispute resolution, e-
security policies such as Public Key Infrastructure (PKI) and Computer Emergency
Response Teams (CERTs).
c) Enhance technological diffusion and overcome market failures by launching e-
government services and e-procurement programmes to contribute to promoting trust and
security in online transactions.
d) Provide and support ICT training for skill development. The government has a major role
in providing basic ICT skills training, such as integration of ICT in school curriculum in
conjunction with the private sector on the ICT demands of the sector.
In the same vein, Connect Africa (2007) stated that African countries can undertake a
series of concrete steps and adopt key regulatory measures that promote affordable, widespread
access to a full range of broadband ICT services. These steps include technology and service
neutral licensing or authorization practices, allocating spectrum for multiple, competitive
22
broadband wireless service providers, creating national Internet Exchange Points (IXPs) and
implementing competition in the provision of international internet connectivity. This will help
develop an enabling environment to attract investment and make affordable access to ICT more
widely available. According to them government can consider the following measures:
1. Promoting the role of regulations as enablers and agents of change by ensuring that ICT
regulators are free from political and industry interference.
2. Launching public consultations and other mechanisms for dialogue with industry and
consumers
3. Liberalizing international gateways to reduce the costs of Internet and voice connectivity.
4. Opening up ICT markets to greater competition through models such as general
authorizations or unified licenses, which take a technology-neutral approach to market
entry.
5. Encouraging the roll-out of broadband infrastructure to rural areas by reducing regulatory
or spectrum fees or lower taxes and by including roll-out requirements in license
agreements e.g. requiring an operator to connect a specified number of new villages.
6. Creating national and regional Internet Exchange Points (IXPs), as well as Voice Over
Internet Protocol (VOIP) peering exchanges, to keep African Internet traffic local, and
pooling international Internet connectivity to keep the costs of peering and transit low.
7. Reducing customs duties on ICT equipment to make it more affordable for end-users.
8. Publishing and benchmarking retail costs for broadband services to persuade operators to
reduce costs for broadband access and services.
According to OECD (2004) a healthy business environment is fundamental for firms to
thrive and benefit from ICT. This includes a transparent, an open and competitive business
framework, independent rule of law for all firms, easy set up of businesses, simple and accessible
corporate regulation and equal and stable legal treatment for national and cross-border
transactions. Stressing the same points, OECD (2002e) enumerated the following steps to create
a healthy business environment for ICT adoption in firms. They include:
1. Network infrastructure: Encourage rollout and use of quality infrastructure at affordable
prices. Broadband connectivity is a key component in ICT development, adoption and
23
use. It accelerates the contribution of ICT to economic growth, facilitates innovation and
promotes efficiency, network effects and positive externalities. Trust Infrastructure will
require getting the regulatory infrastructure right for trust, security, privacy and consumer
protection. Essential are a culture of security to enhance trust in the use of ICT, effective
enforcement of privacy and consumer protection and combating cyber-crime and spam.
2. Digital Production and Information Services: These are increasingly a significant part of
economic activity that offer important opportunities to firms. Governments and the
private sector have the roles of facilitating content availability across all platforms and
encouraging local development of new content, including content from public sources.
3. Skill Upgrading: Lack of ICT skills and business skills are widespread impediments to
effective uptake once adoption decisions are made. Governments have major roles in
providing basic ICT skills in compulsory schooling and an important role in conjunction
with education institutions, business and individuals in providing the framework to
encourage ICT skills formation at higher levels, in vocational training and in ongoing
lifelong learning.
4. Information: Firms may lack objective information regarding the benefits and costs of
adopting ICT. The private sector like business associations and government have a role.
They can provide information about service available and when necessary improve
coordination of government information on the benefits of adoption and use of ICT
including case studies and good-practice demonstrations to tackle market failures through
information supply.
5. Government on-line: On-line provision of government information and services can
increase the efficiency and coverage of public service delivery to firms. It can act as a
model user and standard-setter for ICT adoption by firms. As a model user of broadband,
government can demonstrate the potential of broadband-based services and content,
provide demonstration and pull-through mechanism for firms.
In today’s highly technological environment, encouraging industrial technology,
information and telecommunication technology are crucial for enterprise development.
Promoting industrial technology for enterprises is important because it is a channel for the
improvement of productivity and quality of the product. Assistance in upgrading the literacy,
24
numeracy, computer competencies and basic education levels of managers and employees will
create an enabling environment for ICT utilization in enterprises.
25
Enhancing Marketing of Goods and Services through ICT
Productivity according to Roberts and Tybout (1997) measures the relationship between
the quantity and quality of resources like labour, capital and technology needed to produce them.
The measure of how resources are being brought together in organizations and utilized for
accomplishing a set of results is reaching the highest level of performance with the least
expenditure of resources. Productivity as the instrument for continuous progress and involves a
constant improvement of activities. It is often seen as output per unit of input. Higher
productivity connotes achieving the same volume of out put with less factor inputs or more
volume of output with the same amount of factor inputs. Increased productivity could result from
the reduction in the use of resources, reduction in cost, use of better methods or improvement in
factor capabilities particularly labour. Rensburg and Nande (1999) in addition posited that high
productivity increases competitiveness in terms of penetrating the world market.
According to UNDP (2003) ICT has the potential to facilitate the development of
integrated and scalable solutions in both the public and private sectors that can allow for
streamlining and cost-effective delivery of social goods and services, particularly in the case of
healthcare and education. ICT has also been important in increasing the sustainability and
effectiveness of production cooperatives and micro enterprises such as milk, embroidery and
craft cooperatives and raising income levels of poor women. The informal sector tends to be
greatly underserved in terms of social security and services and ICT is also being used to make it
possible. One World South Asia (2007) posited that ICT can provide new and more efficient
method of production, bringing unattainable market within reach of the poor and improving
delivery of government services. To further stress the contributions of ICT to productivity,
United Nations Information Technology Service (UNITS, 2007) enumerated the following:
1. Accessing and using market place, online price boards to get better prices for product,
animals, as well as better offers on supplies for seeds, fertilizers, mechanical devices,
fishing girt and more information’s on trading conditions.
2. Accessing online services that contain information about job demand and offers.
3. Establishing general e-exchanges or simple e-commerce points for buying and selling
goods and services at the local provincial or national level.
4. Training people, particularly unemployed youth on employable ICT skills’.
26
5. Creating online repositories of information by academics, extension workers, government
officials and farmers to make knowledge resources on farming and fishing more widely
available through graphic interface for easier information access.
6. Establishing networks for farmers, fishermen, co-operative and extension workers to share
best practices on cultivation methods, seed, fertilizers, pest, crop species, produce storage,
markets, fairs and water management.
7. Collaboration of online volunteers with farming backgrounds and expertise, providing
services to onsite volunteers and community members regarding new farming and livestock
management techniques.
8. Providing learning materials to support centers that encourage potential early drop-out
children to return to school.
9. Stimulating contributions from online volunteers of teaching materials to special
educational online knowledge centers available in CD – ROMs, DVDs etc.
10. Creating special programmes, using special software and computer interfaces to provide
basic literacy training for adults.
However Efendiogu (2001) and Krugman (1994) noted that: Technology creation,
adaptation and innovation are important but technology diffusion and use may be even more
important for developing countries. New technologies such as information and communications
technologies and biotechnologies are cross-section technologies and their application to
traditional agricultural, manufacturing and service activities can revolutionize both processes and
business methods, increasing both productivity and competitiveness.
Krugman (1994) pointed out that competitiveness is dependent not only on
macroeconomic adjustment or natural endowments but also on the ability to achieve high
productivity by developing and using these assets (human resources, capital and physical assets)
in the most effective manner. According to Porter (2000) competitiveness is based on the
increased productivity of a nation’s enterprises (continuous increases in value-added). To
achieve these increases in value-ended, enterprises must transform their ways of competing.
They must shift from comparative advantage (low cost labour) to competitive advantages,
namely the ability to compete on cost and quality, delivery and flexibility. United Nation’s
Conference on Trade and Development UNCTAD (2002) said that very often the single most
important indicator of competitiveness is export competitiveness. This consists not only of
higher exports but also more diversified exports and an increase in their technology and skill
27
content. It also includes an expanding base of domestic enterprises able to compete globally,
thus, competitiveness is sustained and is generally accompanied by rising incomes. Growing
market shares show dynamic competitiveness and reveal the ability of a country to get ahead in
terms of technology and trade. According to Efendiogu (2001) strategic competitiveness has two
main aspects: the ability to stay close to the frontier of technology and of integrated international
production systems and the capability and flexibility to accommodate change in old and new
industries. Again Richard (2002) reported that few countries have managed to take large leaps
forward because of insertions into global production systems for technology-intensive products.
Thus, the United Nations Industrial Development Organization ( UNIDO) (2002) agrees that
gains in market shares might be temporary as a result of preferential market access or recent
insertion into a supply chain. For gains to be sustained the enterprises must be based on
upgrading human skills and technologies.
Moreover, Mytelka (1999) stated that competitiveness increasingly depends on the ability
to incorporate new technology and management practices. Manufacturing product has become
extremely complex and knowledge-intensive as investments in intangibles such as research and
development, software, design, engineering, training, marketing and management come to play a
greater role in the production of goods and services. He said that this has gradually extended
beyond the so-called high technology sectors to reshape a broad spectrum of traditional
industries. Thus, creating a platform for increased technology accumulation and catching-up
possibilities which has led to the development of a competitive national production capacity in
many first tier and second tier newly-industrialized economies (NIEs).In support of the above
view, Hobday (1995) stated that: newly-industries economies (NIEs) are successful examples of
export-led growth based on traditional industries. Initially focused on manufacturing of clothing
and textiles, leather and footwear, plastic and toys, they have switched to the low-technology
industries. Some are now leading exporters of technology in the electronics and information
technology field. Such linear progress is not necessarily an invariant sequence and is probably
very much related to historical and geographical circumstances. He maintained that the key to
sustained growth, invariably calls for a structural change from simple to more advanced
technologies. When countries are catching up, this consists mainly in problem-solving
capabilities that enable firms to improve their productivity and to imitate and adapt products. He
asserted that when countries are keeping up, technological upgrading within the firm and
28
continuous improvements in product quality become crucial in order not to lose recently gained
competitive advantages. Finally, when countries are getting ahead, the capability to design and
develop new products and processes becomes vital, on the basis of both research and
development and continuous innovation efforts.
Following the same opinion Hallberg and Bond (2002) reemphasized the importance of
technology to productivity by saying that the two most important ingredients to enhance the
productivity of enterprises are access to finance and to the new technologies. Without access to
new technologies, enterprises in developing countries will continue to use outdated modes of
production and will not be able to meet international quality requirements. Without access to
finance, enterprises will not be able to make the necessary technology investments to innovate or
even update their production processes or products so that they can compete in global markets. To
become and remain productive, enterprises need to move away from being passive receivers of
technology. In the past, technology was thought of as a package that could be acquired in the
market place. Now it is understood that using it effectively requires some tacit knowledge.
Therefore, technology is not simply a package that an enterprise can purchase off the shelf in
order to become productive. Its effective harnessing involves a cumulative process of learning. To
merely acquire and use technology, enterprises do not need to be particularly innovative. To
master new technologies, they need to have in place a system that is receptive to innovation. In
some countries, enterprises are extremely active in Research and Development and in developing
new and innovative products. For example, many of the recent internet-based technologies would
never have emerged without the highly innovative, flexible small enterprises that pioneered these
technologies. Besides access to finance, enterprises in developing countries also need access to
information and skilled labour in order to develop such technology capabilities.
In the view of Lall (2000) skills are essential prerequisite for national productivity and
technological mastery. Skills are the most important single determinant of productivity. The
comparative advantage of developing countries lies in their natural resource endowments and
low-cost labor. There is widespread evidence of investors choosing investment destinations for
low-cost labor advantages. It is possible to enhance productivity for short periods by relying on
unskilled labor. This is not a long-term strategy, but countries have to raise skill levels to grow in
open, productive markets. There is no other way to keep and improve productivity.
29
For developing countries to modify their traditional comparative advantage of low-cost
labor towards more skilled and flexible labor and working methods, their enterprises can climb
the technology ladder and compete in the emerging global economy. However, he said that the
mastery, use and adaptation of new technologies call for more skills. In many developing
countries where basic education and literacy levels are low, it is difficult to match coverage and
technical content to investors’ requirements.
According to David (2005) ICT is one such technology that has become ubiquitous and
important across the developed world. Its strength lies not in just being a sector subject to rapid
technological change but also in that it can increase productivity in other sectors of the economy.
In the same vein, studies carried out by Nick, Rafaella and John (2005) suggest that the biggest
returns to ICT are found in those sectors such as wholesale and retail trade in which the US
productivity revival was felt most strongly. McGuckin and Stiroh (2001) agreed by saying that
the use of ICT is actually highly concentrated in the services and manufacturing sectors. Again
Carr (2003) pointed out that ICT has led to increase in productivity and was responsible for the
productivity boom of the United States. ICT has led to massive increase in business productivity.
The benefits of ICT according to the above source are clearly identifiable and include the
following:
1. As a knowledge-based sector-The ICT producing sector has been subject to some of the
most extreme improvements in productivity of any sector, with processor prices falling
alongside massive increases in processor power. It is a sector with high level of investment
in research and development and is highly innovative and subject to rapid technological
change.
2. As capital – ICT is in itself a capital good, and investment in ICT will increase labour
productivity through the effect of people using computers.
3. ICT and Total Factor Productivity (TFP) – Related to the above, the exploitation of ICT
technology can help firms to be more productive, raising overall TFP. In this case, the use
of ICT can allow a given input to produce a greater output than without ICT.
According to Gordon (2003) ICT, viewed as all-purpose technologies are associated with
a third industrial revolution in most of the recent literature. It increases growth potential and
brings about productivity gains, improving the quality of life. In the United States of America, a
quick acceleration in productivity growth has been associated with a strong ICT contribution
during the second half of the 90s. Also OECD (2003) pointed out that ICT can help make
30
markets more efficient by improving economic management and distribution. It is worth
investing in it because the economy will grow and resource use will become more economical.
ICT adds value by allowing users to operate within faster, larger and more interactive networks.
These lower transaction costs and speed up innovation because people and markets are better
connected, whether in sharing knowledge or trading goods. Firms use ICT to improve efficiency
and reduce costs. And households are better informed about different options, quality and prices,
so that, even if they do not always buy online, they reap the benefits of having access to ICT.
In continuation UNESC (2007) emphasized that ICT can spur growth, create jobs for the
poor, improve market access, contribute to income generation and enhance rural productivity.
The economic contribution of ICT is two-fold: income generation and poverty reduction. ICT
enable people and enterprises to capture economic opportunities with a view to increasing
process efficiency, promoting participation in expanded economic networks and creating
opportunities for employment. They claimed that ICT can enable solution-sharing among local
people and communities, providing access to practical information on matters such as small-
sized business accounting, weather trends or best farming practices. In addition, they can
facilitate global connectivity, resulting in new ways of creating and delivering products and
services on a global scale and provide developing countries with access to new markets and new
sources of competitive advantage to boost income growth. According to them ICT can also
enhance key role that enterprises play in national economic development strategies by facilitating
flows of information, capital, ideas, people and products. A strong enterprises sector that is
integrated into the global digital economy can lead to job creation, increased public revenue and
a general rise in the standard of living. The uses of ICT to enable enterprises to participate in the
knowledge economy, offers enormous opportunities to narrow social and economic inequalities
and thus help achieve broader development goals.
OECD (2004) aptly observed that the internet and e-commerce enable enterprises to gain
access to new customers and to expand their market geographically, even if they physically have
to remain in local and regional markets because of lack of information and marketing capability.
Through their web sites, enterprises can attract potential investors and customers by providing
information on their technologies, products, services and financial positions. Moreover, the
internet can help knowledge-based small businesses convey their ideas to the whole world,
allowing even micro-enterprises with ideas and technologies to remain small and profitable. It
31
can even generate substantial global sales by exploiting their intellectual property over the
internet. ICT and e-business applications provide many benefits across a wide range of intra and
inter-firm business processes and transactions. ICT applications improve information and
knowledge management inside the firm and can reduce transaction costs and increase the speed
and reliability of transactions for both business-to-business and business-to-consumer
transaction. They are effective tools for improving external communications and quality of
services for established and new customers.
Supporting the same view, Moodley in OECD (2004) stated that ICT and e-commerce
offer benefits for a wide range of business processes. At firm level, ICT and its applications can
make communication within the firm faster and make the management of the firm’s resources
more efficient. Seamless transfer of information through shared electronic files and networked
computers increases the efficiency of business processes such as documentation, data processing
and other back-office functions, such as organizing incoming orders and preparing invoices. He
maintained that increasingly sophisticated ICT applications such as Knowledge Management
System (KMS) and Enterprise Resource Planning (ERP) allow firms to store, share and use their
acquired knowledge and know-how. Customer databases with a history of client-specific
correspondence help managers and employees to respond more effectively to customers. A
company wide electronic data aims to disseminate employee’s professional experience. He
posited that at inter-firm level, the Internet and e-commerce have great potential for reducing
transaction costs and increasing the seed and reliability of transaction. They can also reduce
inefficiencies resulting from lack of co-ordination between firms in the value chain. Internet-
based business to business interaction and real-time communication can reduce information
asymmetries between buyers and suppliers and build close relationships among trading partners.
Again, OECD (2002a) pointed out that adopters of e-commerce tend to reduce
transaction costs, increase transaction speed and reliability and exact maximum value from
transactions in their value chains. They emphasized that: in the business to customer context, the
internet and e-commerce can be effective tools for better communication. A corporate web site
that provides information on products, services or technologies can enhance the quality of a
firm’s services to customers and attract new customers. By collecting information on customers’
needs, it can be used for product development or innovation. They claimed that a home page
with a direct link to the corporate e-mail account provides an easy-to-access contact point. For
32
those in different time zones, 24 hour availability of the contact is especially attractive. Also,
Ministry of Economics, Trade and Industry (METI) (2001) stated that: in enterprises, there is
often insufficient sharing of business information between managers and employees and among
employees in part because the personnel’s daily routine tends to be extremely busy. To improve
a firm’s responsiveness to customers, client feedback and information on employees’
professional experience such as know-how for winning a contract, can be electronically stored
and thus available to be shared within the company. Some enterprises have exploited ICT
effectively to improve internal communications and have improved their reputation through swift
responses to customers’ complaints and an ability to capture clients’ needs.
ICT will continue to support rapid productivity growth. There may be slow productivity
growth for many enterprises if they fail to catch up technologically with the industrialized world.
33
ICT in Staff Training:
Staff training and motivation is critical to ensure productivity and job satisfaction. Igwe
(2005) noted that two critical issues, illiteracy and inadequate educational opportunities confront
the Nigerian educational system. The internet offers promise for improving education
worldwide. According to Haddad and Draxler (2002)
The diversity of needs and settings requires a diversity of means.
Here is where learning technologies may provide their most
valuable contribution. They are flexible, unconstrained by time
and place, can be used on demand and provide just-in-time
education. P.3.
On the internet potential for improving education worldwide, attention is drawn to the
“synchronous as well as asynchronous opportunities” offered by the internet which, if well
prepared, is capable of packing a wealth of expertise and experience in efficient packages that
can be modified and updated all the time in response to feedback, new demands and varied
contexts. Princeton Survey Research Associations (PSRA) (2001) carried a survey of the role of
the internet on education, innovation and global living standards. 74% of the subjects studied
believed that educating students via a virtual classroom will provide more students with greater
opportunities to learn, 87% say that the internet will have a positive effect on improving
education, 69% say that the internet will play a sizeable role in improving educational systems
so that children and adults can get the best education regardless of their economic background or
geographic location. UNCTAD (2003) said that improvements in technology favour more highly
educated and skilled workers. ICT is also associated with workplace transformation and other
types of organizational changes. The relative price of ICT and the level of education are the
factors that matter most for ICT adoption and diffusion. Training and education are important
not only for providing skills for work and production, but also for providing a sufficiently strong
demand base for digital or knowledge products.
The emergence of the knowledge-based society is changing the global economy and the
status of education. On the same issue Hawkins (1998), maintained that the quantity of
information, much of it relevant to survival and basic well-being, is exponentially greater than
that available only a few years ago and the rate of its growth is accelerating. A synergistic effect
occurs when important information is coupled with a second modern advance, the new capacity
to communicate among people of the world. Opportunity exists to harness this force and use it
34
positively, consciously and with design, in order to contribute to meeting defined learning needs.
This requires substantial public and private sector investments in software research and
development, hardware, and refurbishing schools. Igwe (2005) said that the information society
demands a workforce that can use technology as a tool to increase productivity and creativity.
This involves identifying reliable sources of information, effectively accessing these sources of
information, synthesizing and communicating that information to colleagues and associates.
National policies in Africa are placing a high priority on improving education through bodies
that become a test bed for innovation in teaching and learning. Hawkins (1998) said that
advances in Information and Communication Technologies (ICT) facilitate advancement and
improvement in education. ICT enhance the quality of teaching and learning, the sharing of
knowledge and information. ICT have the potential, according to Haddad and Draxler (2002) to
contribute to effective learning through expanding access, promoting efficiency, improving the
quality of learning, enhancing the quality of teaching and improving management systems. ICT
also offer possibilities for lifelong learning. The introduction of ICT into universities clearly
changes the way education is conducted. Not only is it possible to work with distance learning
and achieve a closer collaboration between different universities, ICT is also paving the way for
a new pedagogical approach where students are expected to play a more active role than before.
They claimed that using ICT as a tool in education, students should be able to communicate,
create presentations in PowerPoint, interact with colleagues and teachers using technology etc.
For countries to benefit from technological developments, a cadre of professionals has to be
educated with sound ICT backgrounds, with various computer platforms and software
environments.
UNESCO (1998b) is of the opinion that the world is rapidly changing, therefore, different
patterns of labor, new ideas on political participation and human rights, multi-cultural societies
and environmental problems are evolving in Africa as elsewhere. Haddad and Draxler (2002)
noted that pressures of the contemporary age require people and institutions to continuously
acquire new knowledge and skills. Globalization has made education a crucial element of socio-
economic development. Learning is no longer an initial activity preparing one for a productive
life. It is rather a continuous necessity to cope with societies’ changing demands. According to
them this increased need for lifelong learning opportunities takes on a special meaning in the
African context, presenting not only a challenge to the limited effectiveness of the traditional
35
school systems in meeting basic learning needs. It is also a historic opportunity to leap-frog into
the information age to participate and compete as equal partners in our global society.
UNESCO (1998b) observed that to effectively harness the power of the new information
and communication technologies, governments around the world are focusing on strategies to
increase access to and improve the quality of education. Harnessing the power of information
technology is not really about acquiring the least equipment and software. It is about thorough
evaluation of needs and process improvement opportunities. According to Jide (2003) in the
digital age, Nigeria needs quality manpower and investing seriously in human capital. This
means focusing on increased computer literacy and IT professionalism. The level of IT literacy is
still abysmally low due to grinding poverty in the land and ignorance. Computer education must
be accompanied with serious manpower planning in the ICT sector.
Jide (2003) in addition stated that:
Manpower policy will ensure that computer education is not just of
its sake, but also for the benefit of Nigeria and Nigerians. Computer
literacy should no longer be optional in schools. Every Nigerian
child should be computer literate. Education must emphasize the
practical aspects of IT. It should address their IT and Telecoms skills
needs of employers, and the need for world-class personnel that can
offer service in the global IT driven market. As the assertion goes
“the future starts now”. Now is the time to prepare the populace, by
growing their IT skills for the knowledge economy. For sustainable,
strong growth of Nigeria’s economy, it needs a skilled and
enlightened populace that can take advantage of advances in ICT.
p.1.
Jide further noted that the formal structure of education must embrace ICT literacy.
There is a need to start evaluating and encouraging mass supportive schemes such as IT
apprenticeship. Apprenticeships can be developed in conjunction with industry as a way of
training young people to work effectively in their early careers. The present system where IT
professionals come only from the formal and traditional education centers is not working. He
pointed out that representatives of all stakeholders from industries, employers, government,
educators, the voluntary sector, trade unions, learning and training providers, need to fashion out
IT apprenticeship schemes for the youth of Nigeria. Features of such schemes should include job
or work placement, training plan, practical skills based training, certification, with improved
36
career prospects and job security. He said that apprenticeship provides practical ways of gaining
skills for work and continuing learning and career development throughout life. Manpower
planning will entail ensuring that there is an effective strategy and plan of action for growing
skills needed by employers of IT and Telecoms professionals for improved business performance
and for global competitiveness.
Moreover, ICT, according to UNESCO (2002) is a major factor in shaping the new global
economy and producing rapid changes in society. Within the past decade, the new ICT tools
have fundamentally changed the way people communicate and do business. They have produced
significant transformations in industry, agriculture, medicine, business, engineering and other
fields. Furthermore, ICT have the potential to transform the nature of education where and how
learning takes place and the roles of students and managers in the learning process. ICT can
provide powerful tools to help learners access vast knowledge resources, collaborate with others,
consult with experts, share knowledge and solve complex problems using cognitive tools. ICT
also provide learners with powerful new tools to represent their knowledge with text, images,
graphics and video.
UNESCO (2002) also maintains that ICT can be used to support the learning
environment by providing tools for discourse, discussions, collaborative writing and problem-
solving and by providing online support systems to scaffold students’ evolving understanding
and cognitive growth. A number of methods and strategies have been identified. Many of these
strategies employ commonly used productivity tools such as word processing, database,
spreadsheet, or browser applications. Additional strategies that are multipurpose in application
include web-based lessons, cyber guides, multimedia presentations, telecomputing projects,
online discussions, virtual classroom, personalized learning and computer conferencing.
The above listed strategies are discussed below:
1. Web-based Lessons: According to San Diego State University (2002) a Web Quest is an
inquiry-orientated activity in which most or all of the information used by learners are drawn
from the web. Web Quests are designed to use learners’ time well, to focus on using information
rather than looking for it and to support learners’ thinking at the levels of analysis, synthesis and
evaluation. The Web Quest model (Table 1.2) has been effectively applied to all levels of
education from elementary to postgraduate studies and in many different subject areas. The Web
37
Quest provides teachers an option of reviewing and selecting web-based learning activities in a
lesson-type format.
Web Quest Lesson Format
_____________________________________________________________
Introduction – orients the learner to what is coming and creates interest in the lesson.
Task – describes what the learner should have completed at the end of the
exercise
Process – describes the steps the learner should go through in completing the
task
Resources – gives a list of web pages the instructor has located that will help the
learner accomplish the task
Evaluation – provides a rubric for examining six aspects of the student product
Conclusions – presents an opportunity to summarize and reflect upon the
experience, examines the process, generalized what was learned
_____________________________________________________________
Source: San Diego State University (2002)
2. Cyber Guides: According to Yep (2001) Cyber guides include standards-based, web-
delivered units of instruction centered on core works of literature. Cyber guides provide a quick
supplementary set of activities for students as they explore specific pieces of literature. Each
cyber guide contains a student and teacher edition, targeted standards, a description of the task, a
process by which the task may be completed, teacher-selected web sites and an assessment
rubric. The teacher’s guide includes an overview of the activities, suggestions from the author,
and a library of links. The student guides include activity directions written in a format
appropriate for the age and reading ability of the students.
3. Multimedia Presentations: UNESCO (2002) stated that Multimedia combines media
objects such as text, graphics, video, animation and sound to represent and convey information.
In this project-based method of teaching and learning, students acquire new knowledge and skills
by designing, planning and producing a multimedia product. Many teachers find that students are
motivated to learn when they can use technology to present results of a rich project or activity.
The multimedia presentation contains content conveyed by the student’s selection of media. The
teachers in training can look at examples of projects and lessons, at internet sites housing
38
collections of student samples. Some examples of multimedia presentations include: creating a
web page or site, developing a branching hypermedia stack, using a multimedia slide show
application to create a computer presentation and shooting and editing video to create a
computer-generated movie.
Multimedia-authoring tools are used to link and branch screens, making them interactive and
layered with information in photos, scanned images, movies and text. Students and candidates
can easily narrate their projects using a microphone.
4. Telecomputing Projects: Harris (2001) pointed out that telecomputing projects are Internet-
enriched learning activities that often involve students in one location collaborating with students
or adults in one or more other locations. They may share among other things: experiences,
beliefs, data, Information, problem-solving strategies and products they have developed or
jointly developed. Telecomputing tools include email, electronic mailing lists, electronic bulletin
boards, discussion groups, web browsers, real-time chatting and audio-and video-conferencing.
Online resources include web sites, interactive environments and remotely operated robotic
devices.
5. Online Discussions: As stated by UNESCO (2002) that a common type of telecomputing
activity is online discussion. With the growth of infrastructure around the world comes the
ability to access others through remote connections. Students and teacher candidates can connect
to experts and peers through variety of formats such as chat rooms, electronic bulletin boards,
and email. According to them communicating online offers participants freedom to send and
receive information efficiently across diverse geographic locations. Communication can occur
asynchronously allowing time for reflection, or to compensate for varying time zones. In real-
time online communication, as in chat groups, the communication is synchronous and provides
immediate feedback for reinforcement and understanding. Example of online environments
includes email lists.
6. Virtual Classroom: Paul (2007) asserted that virtual classroom is where teaching and studying
take place in real time and is highly interactive. It is an intense process whereby knowledge and
information can be transferred or exchanged between lecturers and their students and between
students themselves. A specific time is set aside on certain days in the week when a lecturer and
his class go on line for a live tutorial session just as if they were in a lecture room on campus.
Everyone is at their computers wherever they happen to be. All take part in the classrooms, one
39
at a time. The students will have had advance warning of the topic to be discussed and are
expected to come fully prepared for the ensuing session. The student are physically at a distance,
but their communication and their active collaboration are just as real as if they were attending
lectures at a residential university. Invariably the backwards and forwards communication is
much more satisfactory and effective, from both sides of the learning process.
7. Personalized learning: Bill (2006) stated that personalized learning is tailoring education to
individual need, interest and aptitude. It is a theme running through government policy for all
stages of education and training. Although the initial policy focus was on the schools sector,
attention has now turned to the learning and skills sector. Personalize learning identified various
dimensions which include information, advice and guidance, assessing learner needs, developing
expertise in learning, improving pastoral support and involving learners in decision-making. It
also include ideas on empowering learners in their relationship with teachers and institutions. It
involves an understanding of community, social and economic needs.
8. Computer Conferencing: Itegboje, Adigum and Oyeyinka (2001) pointed out that a computer
conferencing is an on-going discussion among a number of people over the computer. Each
member makes a contribution electronically by sending messages to all other members.
Also Haddad and Draxler (2002) stated that to enhance training for the workplace,
traditional training programmers’s cannot address new realities adequately. They are costly in
terms of travel and loss of time on the job, disruptive, slow to be modified and incapable of
responding to new needs and provisions in a timely fashion. Network technologies have the
potential to deliver timely and appropriate knowledge and skills to the right people, at a suitable
time, in a convenient place. It allows for personalized, just-in-time, up-to-date and user-centered
educational activities. E-training has been most popular and successful in the corporate world.
Probably because of the culture of innovation and light bureaucracies, the feasibility of having
limited and clear educational objectives and quantifiable trade-offs. It is also used by consumers
for formal skill formation and for professional training and upgrading in certain specializations.
Corporate and consumer e-training modalities have opened new paths, raised new ideas, and
generated new paradigms in the academic world. The sector that responded most to e-training
applications is the tertiary-level sector worldwide.
However, the transition to a knowledge-based economy will make sure that education
and training is a lifelong process not a one-off activity. Knowledge is the main value drive for
40
business and the key to be employable throughout working life. Therefore, technology-enabled-
learning can contribute significantly to lifelong learning and make it a reality. If it is effectively
and consistently promoted, it can build on the necessary ICT user skills of learners.
41
Barriers to Utilization of ICT
Despite the benefits, of ICT numerous barriers exist that make it difficult for enterprises
to embrace these new technologies. In agreement, OECD (2004) stated that:
For firms to adopt e-business and e-commerce strategies and tools,
benefits must outweigh investment and maintenance costs.
Commercial considerations and potential returns drive adoption.
Beyond a certain level of connectivity such as personal computer,
internet access, on-line information or marketing, not all enterprises
will necessarily catch up with large firms. This is because e-
commerce may not bring large benefits and enterprises will stay
with traditional business processes.
Other barriers according to them include: the availability of ICT competencies within the firm,
cost of appropriate interoperable small-firm systems, network infrastructure and internet-related
services. Lack of reliable legal and regulatory differences also impede cross-border transactions.
Policies that will affect the adoption and use of e-business strategies include those designed to
expand and improve the quality of network infrastructure, legal and regulatory environment,
foster technological diffusion and create a favourable business environment.
According to OECD (2002b) three common barriers include:
1. Unsuitability for Business – Enterprises may not see the relevance of ICT to their business.
This was the leading reason given by businesses for not engaging in e-commerce as found by a
survey conducted by OECD in 2002 of enterprises with fewer than 250 employees in 19
European countries. Many may believe that their goods or services do not lend themselves to
internet transactions. Enterprises will not take advantage of e-business unless the benefits
outweigh the costs and justify establishing and maintaining the e-commerce system. Enterprises
may find it difficult to set an e-business case applicable to them because of lack of time,
information and knowledge. They may also wish to retain their current business model and avoid
the risks associated with new investments and new business models or also be worried that
existing customers will be turned off by the changes.
In the same vein Love and Irani (2001) stated that:
In some sectors such as construction and some small retailers,
the view that internet e-commerce is unsuitable for their business
is relatively strong. A study of 20 small construction contractors
in Australia with 2-45 employees suggests that small firms in
this industry have been not only slow but even reluctant to
implement ICT for e-commerce. p.31.
42
Also Mehrtens, Cragg and Mills (2001) pointed out that:
some enterprise in transport services also consider that the internet
does not suit their industry. A firm with 90 employees and an
emphasis on personal contact with clients decided not to adopt the
internet after a three month trial of a website. During the trial the
company received few inquiries regarding possible e-mailing of an
order. Very few of its regular customers had used the internet and
some preferred receiving confirmation of their order via fax or
telephone.p.20
2. Costs of developing and maintaining e-business system: OECD maintain that enterprises are
generally concerned about the costs of establishing and maintaining e-commerce systems since
they often suffer from budget constraints and are less sure of the expected returns on such
investments. Some enterprises cannot afford to adopt sophisticated ICT solutions such as web
sites with a secure environment allowing credit card transactions. Outsourcing webpage design
and updating are optional but the costs of such may be difficult for enterprises to contain.
According to them logistics services, such as package collection and delivery also matter. This is
a real concern for small businesses, especially in remote district where private package
collection or delivery services may not be available at reasonable costs. Some items such as
software, music and books could be delivered digitally but it may not be feasible for an
individual business or customer with slow internet connections or small download capacities.
3. Network Infrastructure: Other common barriers indicated by OECD is that lack of
broadband connections may affect enterprises decisions to adopt e-commerce. Also slow internet
connections and slow data transfers discourage enterprises adoption of the internet.
Besides, the UNDP (2007) indicated several barriers that prevent enterprises from
implementing or maintaining ICT business. These barriers include:
1. Enterprises lack of information on applicability of ICT, of human and financial resources
for implementation and of broadband connections at competitive prices.
2. Insecurities surrounding payments, contract, delivery, privacy and legal protections on both
the business and the client side.
Efforts to improve internet access in Africa have been hampered by a number of factors
as identified by UNESCO (1998) as follows:
1. The small number of potential users having both the skills and equipment to benefit from
access to electronic information networks.
43
2. The scarcity and high costs of equipment, software and information compared to situations
in other countries.
3. Lack of reliable and accessible physical telecommunications infrastructure.
4. Telecommunications monopoly, associated with overly restrictive regulations and high
costs.
5. Lack of interregional networking and cooperation.
Also OECD (2003) stated that, for the information society to hold, one very serious battle
to win is to enhance trust and confidence in ICT and networked systems. There are a number of
threats to ICT use such as spam, virus attacks, worms, hacking, cracking, network outages, all of
which affect operations, whether in businesses, homes, hospitals or critical infrastructures as a
whole.
All companies, big corporations, SMEs or micro enterprises face the barriers when
contemplating e-business implementation. These obstacles according to European Commission
(2000) were grouped into six main categories:
1. Management and strategy: Management Attitudes and Organizational Inflexibility can be
more serious in enterprises because of traditional leadership and organizational forms.
Firms operating in more traditional sectors also tend to be less innovative. However this
is less of a problem in new companies where management may be more receptive to
technology.
2. Cost and financing: The cost of implementation of e-business can be serious barriers for
enterprises. The cost of setting up an e-business includes preliminary planning, procuring
hardware or software tools, continuous maintenance, servicing costs and
telecommunications charges.
3. Skills and training: The lack of suitable technical and managerial staff with sufficient
ICT expertise is another major barrier. Enterprises critically depend on on-the-job-
competence.
44
4. The supply chain: There needs to be shared conviction and full engagement in the
technology, up and down the supply chain to ensure that the rewards can be achieved.
Where software or systems prove to be incompatible with those of customers and
suppliers, there is a high risk that ICT investment may be lost.
5. Technology choices: The enterprises needs to have a system which is compatible to the
systems used by large suppliers or customers who may have resources to implement
complex IT solutions. The enterprise does not have that luxury.
6. Security and reliability: Many enterprises are afraid to move to electronic systems
because of the potential for theft of business information and funds, alteration of financial
documents, as well as the potential for illicit transactions and concerns over payment
security.
Many enterprises managers are so reluctant to change into ICT business even when they
know the benefits. Economics failures could pose a serious constraint particularly in a fast-
changing environment like the internet. Enterprises have a strong interest in standardized and
fully compatible ICT solutions that stay relatively stable over time. The complexity and lack of
robustness of many ICT solutions are discouraging many enterprises. It is this singular gap that
the present study expects to fill.
45
Theoretical Framework
The following theories are relevant to the study:
McGregors Human Relations Theory
McGregor (1960) developed the Human Relations theory X and Y for managers. Theory
X stated that employees normally do not like to work and will try to avoid it. In the same way
since employees do not like working, they have to be coerced, controlled, directed and
threatened with punishment to motivate them to work. Also he stated that the average employee
is lazy, shuns responsibility, is not ambitious, needs direction and principally desires security.
McGregors further propounded under theory Y that work is as natural as play and therefore
people desire to work. He noted that under favourable conditions the average employee will
seek and accept responsibility, therefore comparable personal rewards are important for
employee commitment to achieving work goals. Employees he further stated can be innovative
in solving organizational problems so as to accomplish their own individual objectives. Theory
X presents employees as people that will show little ambition without an enticing incentive
programme and will avoid responsibility whenever they can. They will blame the person first in
most situations, without finding out whether it may be the system, policy or lack of training that
deserves blame. It is the manager’s job to structure the work and energize the employee to help
them accept responsibilities. On the other hand theory Y view’s, is that given the right
conditions most people will want to do well at work. It is believed that the satisfaction of doing
a good job is a strong motivation, so managers should be open to a more positive view of
workers and the possibilities that this creates. Many people interpret theory Y as a positive set of
beliefs about workers. Theory X and Y is related to this study because when a manager creates
an enabling environment, provides necessary trainings and motivations which ICT offer to
enterprises both the employees that desires to work and the ones that are coerced will be
effective and the result is increase in production of goods and services. ICT resources makes
work and communication effective which will result to efficiency in performance but the absence
of ICT will slow down employees effectiveness. Theory X and Y has been extremely helpful in
promoting management understanding of supervisory styles and employee motivational
assumptions.
46
Herzberg’s Motivational Theory
Herzbery (1959) developed motivational theory which involves two factors. Herzberg
terms these factors satisfiers or motivators and hygiene factor or dissatisfiers. The theory states
that employees motivation is achieved with challenging enjoyable work where achievement,
growth, responsibility and advancement are encouraged and recognized. While the
environmental or hygiene factors such as poor lighting, ventilation, poor working conditions, low
salaries and poor supervisory relations, serve as dissatisfiers. The difference between motivators
and hygiene factors is that motivators cause employees to develop internal motivations whereas
hygiene factors can make employees unhappy and dissatisfied but cannot motivate them.
Herzberg was essentially concerned with people’s well-being at work. Underpinning his
theories and academic teachings, he was basically attempting to bring more humanity and caring
into the workplace. His research proved that people will strive to achieve hygiene needs because
they are unhappy without them but once satisfied the effect soon wears off which shows that
satisfaction is temporary. Now poorly managed organizations fail to understand that people are
not motivated by addressing hygiene needs. People are truly motivated by enabling them to reach
for and satisfy the factors that Herzberg identified as real motivators such as achievement,
advancement, development which represent far deeper level of meaning and fulfillment.
In relation to the present study, motivation is the key to enhancing employees which will
result to increase in production of goods and services. ICT serves as motivator to workers
because it makes work and communication easier which develops in the workers the ability for
high advancement in enterprises. This theory is relevant to the study because it equips the
entrepreneurs with knowledge of what motivates employees. With this the managers can create
ICT conducive environment that will enable the workers (employees) achieve the goals of the
organization (increased productivity) thereby inspiring the entrepreneurs to satisfy their
employees individual needs (hygiene needs).
47
Related Empirical Studies
A study by Fintan (2007) investigated the Enterprises Electronically Mediated Workings
and Data Security. The major concern of this study was the need for security of data employed in
entrepreneurial transactions. Data security measures investigated were such that should ensure
protection of data from unauthorized modifications, destruction or disclosure to unwanted
competitors. A survey design was adopted for the study.
The main purpose of the study is:
to determine the integrity and availability of electronic data security facilities in
entrepreneurial transactions and investments in West London.
The following research question guided the study:
What factors determine the integrity and availability of data security facilities in
entrepreneurial transactions and investment in West London? Instrument for data collection
were a questionnaire and interview schedule. The questionnaire contained 51 question items,
structured to collect data on a broad range of company activities related to ICT adaptation
and use. They included ICT strategy, implementation, investment, training and security
policy. 400 firms were used for the study. They were drawn from four main entrepreneurial
sectors: media, logistics, internet and food processing.
Findings from the survey revealed that ICT data security systems are highly dependable
in safeguarding entrepreneurial information from unwanted competitors. Data security facilities
in the area of the study were also shown to be significantly available. Email (99%) and internet
(99%) use are practically ubiquitous, followed closely by anti-virus software (96%) and firewalls
(93%). Own computer network (86%), use of broadband (84%) and company websites (84%)
also have relatively high levels of adoption. Wireless access is used by 53% of firms, a notable
level of adoption given the amount of time that such access has become available. 40% of the
sample use internets and 31% use extranet technology. Video or audio-conferencing (27%) and
groupware (23%) are the least pervasive technologies in the list. Levels of use of anti-virus
software and firewalls almost mirror email and internet ubiquity. This suggests that firms are
aware of internet-borne threats and thus take measures to protect themselves. While each of these
firms can demonstrate apparent intension, whether their infrastructures are actually secure is not
clear.
48
Mahesha and Robyn (2006) carried out a research on Barriers to Adopting ICT and e-
commerce with enterprises in Developing Countries: an Exploratory study in Sri Lanka. The
main purposes of the study were to:
find empirical evidence of the barriers faced by the enterprises in adopting the technologies,
determine the significance of the potential barriers which impacts the adoption and
determine the significance of the supporting activities which will help overcome the
barriers.
The research questions are:
What are the barriers and the significance of the potential barriers faced by the enterprises
in adopting the ICT technologies? What are the significance of the supporting activities
which will help overcome the barriers?
This research looked at enterprises in Colombo District, the capital and the springboard for all
advanced technologies in Sri Lanka.
Questionnaire was the main instrument adopted for this exploratory study. A survey
instrument with questions using Likert scales was developed. This was to capture the
information, reflections and perceptions of the enterprise owners or managers. It was designed
to investigate the internal and external support required by the organizations and their
significance and influence. The population for this study were owners and managing directors of
625 organizations. The recipients were selected using a random systematic sampling technique
from a reputable business directory publication in Sri Lanka and also from the list of enterprises
from Trade net, the e-commerce arm of the Export Development Board of Sri Lanka. Out of 169
total responses, 19 were incomplete, resulting in 150 usable responses, that is a 19% response
rate from the 625 delivered questionnaires.
The findings shows that the respondent enterprises were predominantly limited liability
companies, family businesses and partnerships (94.7%). All organizations had computers with
75.7% using a local area network and 63.2% with a website. These companies primarily used the
phone (92.1%) and email (78.9%) for communication with their customers and suppliers.
Industry sectors represented included: services (36.8%), manufacturing (34.2%) and wholesale
Trade (10.5%). Most owners or managers were male (94.7%) and a majority were professionally
qualified (52.6%).
49
Another study carried out by Ecorys (2007) on ICT, innovation and Economic Growth in
Transition Economies: A multi-country study has the main purposes of the study as follows:
To determine the contributions of ICT utilization to the economic performance of firms.
To find out the contribution of ICT utilization to innovation in firms.
To identify enablers, barriers and constraints for ICT utilization at firms level in transition
countries. Accordingly, the main research questions of the study are:
What is the contribution of ICT utilization to the economic performance of firms?
What is the contribution of ICT utilization to innovation in firms?
What are the enablers, barriers and constraints for ICT utilization at firm level in transition
countries?
The study was carried out in Poland, Russia and Baltic countries. It selects firms in
transition economies as the subject of analysis. The instrument was questionnaire use in the
OECD European Business Innovation project (EBIP) study has been adapted and applied. The
design used for this study is an Electronic Business Survey (EBS) that allows us to collect data at
firm level and place the application and utilization of ICT within its proper context. Such design
has allowed us to take account of the context specificity of the utilization of ICT within different
sectors and firms. The key findings are:
ICT plays an important role in facilitating the modernization and improved economic
performance of firms in transition countries,
ICT in itself is often insufficient for improving economic performance and
ICT use among firms in transition countries is primarily geared towards improved
production and transaction processes.
50
Summary of Related Literature
The impact of ICTs on productivity, product differentiation, competing in time and
accessing markets, developing countries must find their way to use ICTs to leverage their
competitive advantage and participate in the global economy. ICTs can provide new and more
efficient method of production, bringing unattainable market within reach. The provision of
software-based services has become a real opportunity for economic growth for both small and
large companies as the use of internet is spreading everywhere.
To achieve increase in productivity, enterprises must transform their ways of competing.
They must shift form low cost labor to competitive advantage. The key to sustained growth calls
for a structural change from simple to more advanced technologies. Without access to new
technologies, enterprises in developing countries will continue to use outdated modes of
production, and will not be able to meet international quality requirements. ICT is one such
technology that exist everywhere at the same time that can provide the desired change in the
developing world.
Getting the business environment right will involve addressing the various policy, legal,
market and social considerations that interact both at domestic and global levels to create a fertile
condition for ICT – led growth. The government should create an appropriate environments for
ICT access and use, develop e-security policies, programmes, provide supportive legal and
regulatory environment. Also they should enhance technological diffusion and overcome market
failure, provide and support ICT training for skill development.
Staff training to improve effectiveness cannot be overemphasized, particularly in this age
of internet. To enhance training in a workplace, traditional training programmes cannot address
new realities adequately. They are costly in terms of travel and loss of time on the job,
disruptive, slow to be modified and incapable of responding to new needs and provisions on
time. Network technologies have the potential to deliver timely and right knowledge and skills to
the right people at a suitable time in a convenient place. ICT allows for personalized, just-in-
time, up-to-date and user-centered educational activities.
Though ICT is beneficial to enterprises, there are so many barriers to its adoption. These
barriers include unsuitability for business, lack of ICT and managerial knowledge internally,
costs of developing and maintaining e-business system, and network infrastructure. For
enterprises to adopt ICTs strategies, commercial considerations and potential returns drive
51
adoption. Enterprises may not easily catch-up with a level of connectivity through personal
computer, internet access, on-line information and on-line marketing. Lack of reliable country
legal and regulatory differences can hinder cross-border transactions.
The review looked at the McGregor theory X and Y and Herzberg motivational theory.
McGregor theory X and Y is related to this study because when entrepreneurs, create an enabling
environment, provide necessary trainings and motivations which ICT offer to enterprises both
the employees that desires to work and the ones that are coerced will be effective and the result is
increase in production of goods and services. Also Herzberg’s motivational theory is related to
the present study because ICT serves as motivator to workers by making work and
communication easier which develops in the workers the ability for high advancement in
enterprises.
The review finally presented empirical studies conducted outside the country to assess the
extent of ICT utilization among managers in enterprises. The empirical studies elicited
information on ICT strategy implementation, investment, training and security policy in media,
logistic, internet and food processing sectors. This is similar to the task of the present study
except that this study was conducted in different sectors. This study is therefore expected to fill
the gap of ascertaining the extent to which ICT is utilized in enhancing entrepreneurship in
South-East Nigeria.
52
CHAPTER THREE
RESEARCH METHOD
This chapter describes the research method adopted for the study. It is discussed under
the following sub-headings; Design of the Study, the Area of the Study, Population of the Study,
Sample and Sampling Techniques, Instrument for Data Collection, Validation and Reliability of
the Instrument, Procedure for Data Collection and Methods of Data Analysis.
Design of the Study
The study used the descriptive survey research design. Ali (2006) defined descriptive
survey as a design which seeks or uses the sample data of an investigation to document, describe
and explain what is existent or non-existent on the present status of a phenomenon being
investigated. Descriptive survey research design is appropriate in the present study because the
study uses sample data from managers to investigate the extent of utilization of ICT in
enterprises so as to document, describe and explain what is existent or non-existent in the area
being investigated.
Area of Study
The area of this study is the South-East Zone of Nigeria comprising the present Abia,
Anambra, Enugu, Ebonyi and Imo States. The people of the South- East Zone are Igbo’s. They
are known for their enterprising spirit. They are resourceful and hardworking. As posited by
Eneh (2005) the South-East represents the soul and spirit of a territory that is the exclusive
preserve of most of the reliable business wizards of Africa.
The zone is described as the Nigeria’s home of business minds. Within the zone is
Onitsha with the largest market in West Africa. Abia the indisputable home of indigenous
technology in Nigeria and Africa. Nnewi the Tiawan of Nigeria and Abakaliki the food basket of
Nigeria . South-East is certainly the industrial catchment zone for Nigeria. This informs the
choice of this zone to anchor this study.
52
53
Population of the Study
Information gathered from Co-operate Affairs Commission, Abuja shows that there are
1251 registered private medium and large scale enterprises located in the South-East ,Zone of
Nigeria (see appendix A for distribution p.79).
Since each enterprise is managed by a single entrepreneur the population of the study
therefore is 1251 entrepreneurs of medium and large scale enterprises in South-East Nigeria.
This is further distributed as follows 876 entrepreneurs of medium scale enterprises and 375
entrepreneurs of large scale enterprises.
Sample and Sampling Techniques
The sample for the study is 723 entrepreneurs of medium and large scale enterprises in
South-East Zone of Nigeria. Proportionate Stratified Sampling Technique was used to
determine entrepreneurs of medium scale enterprises used for the study while the entire
entrepreneurs of large scale enterprises were used. For the medium scale enterprises, 40
percent of entrepreneurs in each state was used and the rationale for selecting 40 percent of the
subjects is in agreement with Nwana (1990), that if the populations for a study is a few hundred,
a 40 percent or more sample will do, if many hundreds, a 20 percent sample will do, if a few
thousands a 10 percent sample will do, and if several thousands, a five percent or less sample
will do. A total sample of 723 subjects were used for the study (see appendix B for distribution
p.80).
Instrument for Data Collection
The instrument used for data collection was the questionnaire titled Utilization of
Information and Communication Technology Questionnaire (UICTQ). Section ‘A’ deals with
personal data of the respondents. Sections ‘B’, ‘C’, and ‘E’ were adapted from Global E-
Commerce Survey, 2002, while Section “D” was self-developed by the investigator. Sections
‘B’, ‘C’ and E dealt with items related to Utilization of ICT to create enabling business
environment, information on boosting production of good and services through ICT and barriers
to utilization of ICT to enhance entrepreneurship respectively while section ‘D’ contains items on
staff training. The number of items in the questionnaire was 48 (see Appendix C p. 81).
54
The instrument was developed using the four point response mode and numerical values as
follows:
Very High Extent - 4
High Extent - 3
Low Extent - 2
Never - 1
Very Often - 4
Often - 3
Minimal - 2
Not at All - 1
Validation of the Instrument
The instrument was subjected to face validation. The instrument was given to three
experts in Adult Education, Computer Science and Educational Technology in the University
of Nigeria, Nsukka. This is done to make the questionnaire more effective and efficient in
measuring what its intended to measure. To assist in the proper validation, the questionnaire was
accompanied with the purpose of the study, research questions and the hypothesis for the study.
The validates were requested to assess the instrument in terms of content, language, relevance
and sequence of ideas Their inputs were incorporated into the instrument by the researcher.
The items found to be vague and ambiguous were removed from the instrument as directed by
the validates .Other recommendations suggested were effected before the final instrument was
developed (See Appendix D p. 86)
Reliability of the Instrument
The reliability of the instrument was established by subjecting the instrument to field
trial test. The instrument was administered to 30 managers of medium and large scale enterprises
in Kogi State. Entrepreneurs of enterprises in Kogi State were used for the trial test because they
were not part of the study and due to proximity they were assumed to have the same
characteristic with entrepreneurs in the area of study. The researcher used Cronbach Alpha to
analyze the data from the trial test. Cronbach Alpha was found appropriate because the items in
the instrument were in clusters and were non-dichotomously rated. The following reliability
estimates were obtained for the different clusters .82, .78, .77 and .81 and the overall coefficient
of 0.79 was estimated which shows that the instrument is reliable. (See Appendix E p.96)
55
Procedure for Data Collection
In order to gain co-operation from the respondents an introductory letter was collected
from the Head, Department of Adult Education, University of Nigeria, Nsukka (see Appendix F
p.97). The researcher trained eight research assistants (post graduate students) all from
University of Nigeria, Nsukka to help in the administration of the questionnaire to respondents.
This caliber of students were chosen as research assistants because they could understand the
information on the instrument. (See Appendix G p.98). A two day training program was
conducted for the assistants. During the training they were intimated with the objectives, purpose
of the research and the items on the instrument were explained to them to get the assistants
acquainted with the content to avoid confusion.
In order to collect data from the entrepreneurs of various enterprises, the researcher
assistants were sent to the five states to administer the questionnaire. They visited the
entrepreneurs in their offices during working hours. The entrepreneurs were given 5 days ,
because of their busy schedule to enable them fill the instrument for collection by the research
assistants.
Method of Data Analysis
Data were analyzed using mean and standard deviation to answer the research questions
one to four. The t-test statistics was used to test hypotheses 1 to 4 at 0.5% level of significance.
The four point rating scale adopted on the instrument with the assigned values is as follows:
Response Options Rating Point
Very High Extent (VHE) 4
High Extent (HE) 3
Low Extent (LE) 2
Never (N) 1
Very Often (VO) 4
Often (O) 3
Minimal (M) 2
Not At All (NAA) 1
56
However, in interpreting the responses of the entrepreneurs, the real limit of numbers was
adopted as follows:
Boundary Range Interpretation
3.50 - 4.00 means Very High Extent (VHE)
2.50 – 3.49 means High Extent (HE)
1.50 – 2.49 means Low Extent (LE)
1.00 – 1.49 means Never (N)
The hypothesis for the study will not be accepted if the sig. 2-tailed is less than 0.05 and will
not be rejected if the sig. 2-tailed is greater than 0.05.
57
CHAPTER FOUR
PRESENTATION OF RESULTS
This chapter presents the results of data analysis. The results are hereby presented
according to the research questions and hypotheses for the study.
Research Question One
To what extent do entrepreneurs of medium and large scale enterprises utilize ICT to
create enabling business environment? The data answering the above research question are
contained in table one.
57
58
Table 1
Mean scores of entrepreneurs on the extent of utilization of ICT to create enabling business
environment (N=512)
S/N
Item
X
Standard
Deviation
Decision
1 Awareness building among employees 2.69 1.12 HE
2 Accessing the website of Corporate
Affairs Commission for enterprise
registration.
2.76
.75
HE
3 Educating of personnel on e-commerce. 3.54 .70 VHE
4 Establishing a fair treatment for cross-
border business.
3.11
.96
HE
5 To improve computer and internet
diffusion in the country
3.32
.84
HE
6 Addressing issues related to cyber
crimes, cyber security and spam
3.18
.88
HE
7 Lowing the cost of website
maintenance
3.36 .84 HE
8 Lowing the cost of computers 3.30 .84 HE
9 Developing secure e-payment services. 3.28 .82 HE
10 Provision of business consulting
services.
3.29
.83
HE
11 Provision of business skills education. 3.31 .86 HE
12 Provision of enterprise financing 3.29 .83 HE
13 Achieving favorable tax and trade
policies
3.30 .85 HE
14 Seeking sponsorship for computer
training of enterprise employees.
3.20
.92
HE
Grand Mean 3.20 .92 HE
Table 1 shows that item 3 has the highest mean score. Its mean falls within the range of
3.50-4.00. This means that entrepreneurs utilize ICT to a very high extent to create enabling
business environment. Items 1,2,4,5,6,7,8,9,10,11,12,13 and 14 have their means within the
59
range of 2.50 - 3.49. This means that entrepreneurs in South-East Zone utilize ICT to a high
extent in creating enabling business environment in the areas specifically indicated on the items.
On the whole, a grand mean of 3.20 was calculated for the entire cluster, showing that
ICT is utilized to high extent by entrepreneurs in the South-East Zone in creating enabling
business environment.
60
Research Question Two
To what extent do entrepreneurs of medium and large scale enterprises utilize ICT in
enhancing marketing of goods and services? The data answering the above research question
are contained in table two.
Table 2
Mean scores of entrepreneurs on the extent of utilization of ICT in enhancing marketing
of goods and services.(N512)
S/N
Item
X
Standard
Deviation
Decision
15 Using internet for receiving or sending messages
on existing goods and services.
3.24 .97 HE
16 Using phone for communication in business 2.54 .50 HE
17 Typing and storing information in the computer. 3.24 .97 HE
18 Advertising products and services on the internet. 3.65 .65 VHE
19 Advertising employment opportunities in the
internet.
3.22 .95 HE
20 On-line purchase of goods and services. 2.66 1.15 HE
21 On-line delivery of goods and services. 1.46 1.18 N
22 Networking with other enterprises through the
internet.
2.67 1.10 HE
23 Using online price board to get better offers on
supplies.
2.50 1.18 HE
24 Browsing to get information on the new methods of
services and products from the internet.
2.64
1.12
HE
25 Using web forum for enterprises to show-case their
products to an international market.
2.55
1.12
HE
26 Use satellite conference to share knowledge on new
methods of production.
2.96 .98 HE
27 Using ICT statistical packages in accounting and
budgeting practices.
2.63 1.17 HE
28 Using computer to facilitate marking of goods and
services.
2.88 1.07 HE
29 Using internet based production function packages in
reducing wastage in production.
2.89 1.05 HE
30 Increasing customers through websites. 2.93 .93 HE
Grand Mean 2.89 .10 HE
61
Table 2 shows that item 18 has mean (3.65) within the range of 3.50 – 4.00.This means
that entrepreneurs utilize the internet to a very high extent in advertising goods and
services so as to enhance marketing. Also items 15,16,17,19,20,22,23,24,25,26,27,28,29
and 30 have their means ranging between 2.50 – 3.49.This means that entrepreneurs
utilize various types of ICT to a high extent in boosting production of goods and services
in the areas indentified. Item 21 has a mean of 1.46. This mean is within the range of 1.00
– 1.49.The implication is that internet is not used by entrepreneurs in the South-East to
deliver goods.
However, a grand mean of 2.89 was computed for the cluster, shoeing that entrepreneurs
use ICT to a high extent in enhancing marketing of goods and services
62
Research Question Three
To what extent do entrepreneurs of medium and large scale enterprises utilize ICT in staff
training? The data answering the above research question are contained in table three.
Table 3
Mean scores of entrepreneurs on the extent of utilization of ICT in staff training? (N=512)
S/N
Item
X
Standard
Deviation
Decision
31 Using web-based lesson for staff
training
3.21
.91
O
32 Using cyber guide for staff training 3.28 .61 O
33 Using multimedia presentations for
staff training
2.61
1.167
O
34 Using telecomputing projects for
training
2.57
1.14
O
35 Using computer conferencing for
staff training
2.53
1.11
O
36 Using virtual classroom for staff
training
2.49
1.10
M
37 Using personalized course for staff
training
2.49
1.11
M
Grand Mean 2.59 1.10 O
Table 3 shows that items 31,32,33,34 and 35 have means ranging from 2.50 -3.49. This
means that these ICTs are often used in staff training. Items 36 and 37 on the other hand have
their means ranging between 1.50 – 2.49. This means that those ICTs are utilized minimally in
staff training. However, a grand mean of 2.59 was computed for the cluster, showing that
entrepreneurs in the South-East Zone often utilize ICT in staff training.
63
Research Question Four
What are the barriers to the utilization of ICT to enhance entrepreneurship? The data
answering the above research question are contained in table four.
Table 4
Mean scores of entrepreneurs of medium and large scale enterprises on the barriers to the
utilization of ICT to enhance entrepreneurship (N = 512 )
S/N
Item
X
Standard
deviation
Decision
38
Face to face interaction.
2.52
1.09
HE
39 Privacy of data or security issues. 2.53 .99 HE
40 Customers incompetence in using
the technology.
3.07 .88 HE
41 Limited number of competent staff.
3.14
.90
HE
42 Inadequate electric power supply.
2.92
.88
HE
43 Lack of fund to purchase electronic
equipment.
2.80
.93
HE
44 Incompetence in the use of
internet as part of business strategy.
2.74
.93
HE
45 High cost of internet access. 2.88 .85 HE
46 None support of business laws for
e-commerce.
2.90
.82
HE
47 Taxation of internet sales. 3.04 .84 HE
48 Inadequate legal protection for
internet purchases.
2.49
1.12
LE
Grand Mean 2.57 1.09 HE
Table 4 shows that items 38,39,40.41,42,43,44,45,46 and 47 have their means ranging
from 2.50 – 3.49. This means that the identifies barriers hinder entrepreneurs from using ICT to
a high extent. Item 48 has its mean (3.49) within a range of 1.50 – 2.49. It shows that
inadequate legal protection of internet purchases hinders entrepreneurs from utilizing ICT to a
low extent.
The grand means of 2.57 was obtained for the cluster, showing that the identifies factors
are barriers to the utilization of ICT by entrepreneurs in the South-East Zone to a high extent.
64
Testing of Hypotheses
Ho1
There is no significant difference in the mean rating of entrepreneurs of medium and
large scale enterprises on the extent to which ICT is being utilized to create enabling business
environment . The result of hypothesis is presented in table five.
Table 5
t-Test of difference between the mean scores of entrepreneurs of medium and large scale
enterprises on the utilization of ICT to create enabling business environment.
Enterprise
s
N
X
SD df t Sig
(2-tailed)
Decision
Medium
Large
277
235
3.13
3.28
.92
.92
510 -1.75 .08 Not
Significant
Table 5 shows that the calculated t value -1.75 and significant at 0.08but not significant at
0.05. This is because 0.08 is greater than 0.05. The hypothesis was no rejected. Therefore,
there is no significant difference between the mean scores of the entrepreneurs of medium and
large scale enterprises on the utilization of ICT to create enabling business environment.
65
H02
There is no significant difference in the mean rating of entrepreneurs of medium and
large scale enterprises on the extent of utilization of ICT in enhancing marketing of goods and
services. The data verifying the above hypothesis is presented in table six.
Table 6
t-test of difference between the mean scores of entrepreneurs of medium and large scale
enterprises on the extent of ICT utilization in enhancing marketing of goods and services.
Table 6 shows that the calculated t value -2.80 and significant at 0.01. The value of t is
equally significance at 0.05. This is because 0.01 is less than 0.05.Hence the hypothesis is not
accepted. There is significant difference between the mean scores of entrepreneurs of medium
and large scales enterprises on the extent of ICT utilization in enhancing marketing of goods and
services.
Enterprises N
X
SD df T Sig
(2-tailed)
Decision
Medium
Large
277
235
2.78
3.03
.10
.99
510 -2.80 .01 Significant
66
H03
There is no significant difference in the mean rating of entrepreneurs of medium and
large scale enterprises on the extent of utilization of ICT in staff training. The data verifying the
above hypothesis is contained in table seven.
Table 7
t-test of difference between the mean scores of entrepreneurs of medium and large scale
enterprises on the extent of ICT utilization in staff training.
Enterprises N
X
SD Df T Sig
(2-tailed)
Decision
Medium
Large
277
235
2.32
2.64
1.04
1.14
510 -3.25
.00 Significant
Table 7 shows that the calculated t value -3.25 and significant at 0.00. The value of t is equally
significant at 0.05. This is because 0.00 is less than 0.05. Hence the hypothesis is not accepted.
There is significant difference between the mean scores of entrepreneurs of medium and large
scale enterprises on the extent of ICT utilization in staff training.
67
H04
There is no significant difference in the mean rating of entrepreneurs of medium and
large scale enterprises on the barriers to utilization of ICT. The data verifying the above
hypothesis is presented in table eight
Table 8
t-test of difference between the mean scores of entrepreneurs of medium and large
scale enterprises on the barriers to utilization of ICT
Enterprises N
X
SD Df T Sig
(2-tailed)
Decision
Medium
Large
277
235
2.51
2.64
1.12
1.05
510
-1.30
.20
Not
Significant
Table 8 shows that the calculated t value -1.30 and significant 0.20 but not significant at
0.05. This is because 0.20 is greater than 0.05. The hypothesis was not rejected. Therefore there
is no significant difference between the mean scores of entrepreneurs of medium and large scale
enterprises on the barriers to utilization of ICT.
68
Summary of Findings
The following constitute the major findings of this study:
1. That ICT is utilized to a high extent by entrepreneurs of medium and large scale
enterprises to create enabling business environment in South-East Zone, Nigeria.
Educating of personnel on e-commerce is utilized to a very high extent by managers of
medium and large scale enterprises
2. That ICT is utilized to a high extent by entrepreneurs to enhance marketing of goods and
services in South-East Zone. More importantly advertising products and services on the
internet is used to a very high extent.
3. The finding show that entrepreneurs often utilize ICT in staff training. However, virtual
classroom and personalized course are not utilized in staff training.
4. That limited number of competent staff, customers incompetence in using technology
and taxation of internet sales, to a high extent hinder the utilization of ICT by
entrepreneurs to enhance entrepreneurship in South-East Zone . More so inadequate
legal protection for internet purchases constitute barriers to a low extent in enterprises.
5. There is no significant difference between the mean scores of entrepreneurs medium and
large scale enterprises on the utilization of ICT to create enabling business environment.
6. There is significant difference in the mean scores of entrepreneurs of medium and large
scale enterprises on the extent of utilization of ICT in enhancing marketing of goods and
services.
7. There is significant difference between the mean scores of the entrepreneurs of medium
and large scale enterprises on the utilization of ICT in staff training.
8. There is no significant difference in the mean scores of entrepreneurs of medium and
large scale enterprises on the barriers to the utilization of ICT.
69
CHAPTER FIVE
DISCUSSION, CONCLUSION AND RECOMMENDATIONS
In this chapter are presented the discussion of findings, implications of the study and
conclusions drawn from the findings of the study. Also highlighted are the limitations of the
study, recommendations and suggestions for further studies.
Discussion
Research Question One
To what extent do entrepreneurs of medium and large scale enterprises utilize ICT to
create enabling business environment?
The finding shows that entrepreneurs in the South-East Zone utilize ICT to a high extent in
creating enabling business environment. These environment include, educating personnel on e-
commerce, lowing the cost of website maintenance, to improve computer and internet diffusion
in the country, lowing the cost of computers, provision of business skills education and achieving
favorable tax policies. This finding could be predicated on the fact that managers have come to
realize that no business can flourish adequately in this technological era without the adoption of
ICT. The result of the study agrees with the findings of Fiorian (2005) that an economic
environment which includes the increasing importance of human resources, new and improved
technology and innovation has come to a center stage. The result is also in line with OECD
(2004) which stated that a healthy business environment is fundamental for enterprises to thrive
and benefit from ICT. Enabling environment according to OECD includes a transparent, open
and competitive business framework, clear independent rule of law for all firms, simple and
accessible corporate regulations and equal and stable legal treatment for national and cross-
border transactions. This result further agrees with World Bank (2005) which noted that public
policy together with ICT are the tool by which the government can help to create enabling
business environment.
69
70
Research Question Two
To what extent do entrepreneurs of medium and large scale enterprises Utilize ICT in
enhancing marketing of goods and services?
The findings reveal that entrepreneurs of medium and large scale enterprises utilize ICT
to a high extent in enhancing marketing of goods and services. Specifically advertising products
and services on the internet, using internet for receiving or sending messages, typing and storing
information in the computer, advertising employment opportunities in the internet and using
satellite conference to share knowledge on new methods of production have enhanced
marketing of goods and services. This could be attributed to the fact that managers in the
South-East Zone have come to realize that with the use of ICT the scope of their market will be
widened. This affords them the opportunity to do business beyond their local environment and
internationally, thereby enhancing the cost effectiveness in the marketing of goods and services,
due to large scale production. The result of this study lends credence to the findings of One
World South Asia (2007) that ICT can provide new and more efficient method of production,
bringing unattainable market within reach of the poor and improving delivery of government
services. The finding is well corroborated to those of Efiendioglu (2001) and Krugman (1994)
that technology creation, adaptation and innovation are important but technology diffusion and
use may be even more important for developing countries. New technologies such as information
and communication and their application in traditional agricultural, manufacturing and services
activities can revolutionize production processes and business methods, increasing both
productivity and competitiveness. This result also supports the study of OECD (2003) that ICT
can help make markets more efficient by improving economic management and distribution. It is
worth investing in it because the economy will grow and resource use will become more
economical. ICT adds value by allowing users to operate within faster, larger, and more
interactive networks. The result further corroborates with the study of Hallberg and Bond
(2002) that the two most important ingredients in enhancing marketing of goods and services
are access to finance and to new technologies.
71
Research Question Three
To what extent do entrepreneurs of medium and large scale enterprises utilize ICT in
staff training?
The findings evidenced that entrepreneurs of medium and large scale enterprises utilize ICT
often in staff training. The findings of this study indicates that entrepreneurs use web-based
lessons, cyber guides, multimedia presentations and telecommuting project often in staff
training. This is because these means of training are internet and computer based and are easily
accessible to managers and staff. The result agrees with the study of UNESCO (2002) that ICT
has the potential to transform the nature of education, where and how learning takes place and
the roles of students and teachers in the learning process. In continuation UNESCO noted that
ICT can provide powerful tools to help learners access vast knowledge resources, collaborate
with others, consult experts, share knowledge and solve complex problems. The result also
strongly aligns with the study of Haddad and Draxler (2002) that ICT can contribute to effective
learning through expanding access, promoting efficiency, improving the quality of learning,
enhancing the quality of teaching and improving the management system. On the contrary the
result also shows that virtual classroom and personalized course are minimally used in staff
training by managers. This is because they require more technical skills and more resources
which may not be at the disposal of the managers. Supporting this result is Jide (2003) that the
level of IT literacy is still abysmally low when it comes to utilization of ICT that require high
technical skills.
Research Question Four
What are the barriers to utilization of ICT to enhance entrepreneurship by entrepreneurs
of medium and large scale enterprises in South-East Zone?
The finding show that entrepreneurs of medium and large scale enterprises encounter
barriers to a high extent in utilization of ICT to enhance entrepreneurship in the South-East Zone.
The major barriers revealed were limited number of competent staff, customers incompetence
in using technology, taxation of internet sales and inadequate electric power supply. The
findings are not surprising because of the level of development in the economy which is depicted
in the areas of lack of infrastructure, lack of fund and inadequate access to ICT facilities. The
study lends credence to the findings of European Commission (2000) that many enterprises are
72
afraid to move to electronic systems because of the incompetence, potential for theft of business
information and funds, alteration of financial documents as well as the high cost of internet
access. The result also is in line with the findings of UNDP (2007) which indicated that several
barriers which prevent enterprises from maintaining ICT business include enterprise lack of
information on applicability of ICT, human and financial resources, insecurity surrounding
payments, delivery, privacy and legal protections on both the business and the client side.
Hypothesis 1
There is no significant difference in the mean rating of entrepreneurs of medium and large
scale enterprises on the extent to which ICT is being utilized to create enabling business
environment.
Table 5 shows that the calculated t value -1.75 and significant at 0.08 but not significant at
0.05. This is because 0.08 is greater than 0.05. The hypothesis was not rejected. There is no
significant difference between the mean scores of entrepreneurs of medium and large scale
enterprises on the extent of utilization of ICT to create enabling business environment. The
response is consistent with OECD (2004) view that a healthy business environment is
fundamental for firms to thrive and benefit from ICT. This includes a transparent, an open and
competitive business framework, independent rule of law for all firms, easy set up of businesses,
simple and accessible corporate regulation, equal and stable legal treatment for national and
cross-border transactions.
Hypothesis 2
There is no significant difference in the mean rating of entrepreneurs of medium and large
scale enterprises on the extent of utilization of ICT in enhancing marketing of goods and
services.
Table 6 shows that the calculated t value of -2.80 and significant at 0.01. This value of t is
equally significant at 0.05. This is because 0.01 is less than 0.05. Hence the hypothesis is not
accepted. There is significant difference between the mean scores of entrepreneurs of medium
and large scale enterprises on the extent of ICT utilization in enhancing marketing of goods and
services. This response is in consonant with UNESC(2007)view that ICT can spur growth,
73
create jobs for the poor, improve market access, contribute to income generation and enhance
productivity.
Hypothesis 3
There is no significant difference in the mean rating of entrepreneurs of medium and large
scale enterprises in the extent of utilization of ICT in staff training.
Table 7 shows that the calculated t value -3.25 and significant at 0.00. The value of t is
equally significant at 0.05. This is because 0.00 is less than 0.05. Hence the hypothesis is not
accepted. There is significant difference between the mean scores of entrepreneurs of medium
and large scale enterprises on the extent of ICT utilization in staff training. This response of
entrepreneurs agrees with Haddad and Draxler (2002) view that ICT contribute to effective
learning through expanded access, promoting efficiency, improving the equality of learning,
enhancing the quality of teaching and improving management system. ICT also offer
possibilities for lifelong learning.
Hypothesis 4
There is no significant difference in the mean rating of entrepreneurs of medium and large
scale enterprises on barriers to utilization of ICT.
Table 8 shows that the calculated t value -1.30 and significant at 0.20 but not significant at
0.05. This is because 0.20 is greater than 0.05. The hypothesis was not rejected. Therefore there
is no significant difference between the mean scores of entrepreneurs of medium and large scale
enterprises on the barriers to utilization of ICT.
The response of entrepreneurs agrees with OECD(2003) that for information society to hold, one
very serious battle to win is to enhance trust and confidence in ICT and networked systems.
There are a number of threats to ICT use such as spam; virus attacks; worms; hacking; cracking;
network outages; all of which affect operations; whether in businesses; homes; hospitals or
critical infrastructure.
74
Implications of the study for Adult Education
This section highlights the implications of this study as it relates to entrepreneurs, and
adult education.
It was discovered that entrepreneurs utilize ICT to a high extent in enhancing
entrepreneurship in South-East, Nigeria. This has implication for entrepreneurs and enterprises
in South-East. The implication is that entrepreneurs in the South-East Zone can compete
effectively with their counterparts in other Zones and beyond. They should continue to not only
sustain the level at which they use ICT to create enabling business environment and boost
production of goods and services but should endeavour to increase the utilization to a very high
extent to sustain the performance of the medium and large scale enterprises in South-East Zone.
Further implication is that for entrepreneurs in the Zone to be able to compete within the
business environment, they should take advantages of the utilization of ICT to create enabling
business environment and boosting production of goods and services. If they fail, they cannot
tap all the resources within their environment to compete effectively in the business world.
The finding that ICT is used to a high extent in staff training implies that more staff will
be retrained and so can keep abreast with recent developments in the business arena. It further
implies that there will be an increase in the human resource development capacity of the business
workforce. With ICT there will be an increased and unlimited access to the volume of knowledge
and information available to the workforce. With ICT trainees can network effectively, sharing
knowledge and ideas which will increase their efficiency on the job. On the other hand it was
found out that entrepreneurs utilize virtual classroom and personalized course minimally in staff
training. This has implication because virtual classroom and personalized course are advanced
ICT tools that facilitate staff training. Their minimal utilization will be a setback to workforce
development and entrepreneurs in the Zone may have difficulties in competing with their
counterparts in the area of staff training.
The finding show that limited number of competent staff, customers incompetence in
using the technology ,taxation of internet sales, and inadequate electric power supply constitute
barriers to a high extent. If these barriers are not addressed, both entrepreneurs and other
employees may not be able to tap the resources that accrue to collaboration in business world.
More so, it further implies that enterprises in the South-East Zone may find it difficult to cue into
the global technological trend. This will reduce their competiveness in the global market and
75
may eventually lead to their being forced out of the market. The entrepreneurs in the South-East
Zone will not keep abreast with recent development in the recent ICT world while their
counterparts will take advantage of integration of technology for future advancement in business.
. Finally the findings have important implication for adult education. Adult educators should
have technological skills and knowledge. The managers of adult education should avail
themselves of the findings of this study by creating enabling ICT environment. This will enable
the field of adult education to achieve its objectives and keep abreast of technology. Adult
educators can network effectively and more can be trained at a lower cost.
Conclusion
The conclusions are drawn from the findings of the study. Entrepreneurs of medium and
large scale enterprises agree that ICT is utilized to create enabling business environment.
Results of the study emphasized that ICT have boosted production of goods and services in
enterprises. From the study it is clear that ICT are not fully utilized in staff training by
entrepreneurs of enterprises. The result of the study evidenced many barriers that prevent the
utilization of ICT in business in South-East Zone, Nigeria.
Recommendations
Based on the findings the following recommendations are made:
1. Entrepreneurs should organize on-the-job training and offer opportunities for in-service
training to their staff to make them more competent in the use of ICT.
2. Educational institutions should incorporate digital courses in all levels of education to
develop ICT compliance workers at the points of employment.
3. Entrepreneurs in the South-East should develop digital networks to promote digital
economy and network of ideas.
4. The government should reduce the tax of internet sales to promote the purchase of internet
resources by entrepreneurs.
5. Government should subsidize the cost of internet sales to reduce the burden of lack of fund
on entrepreneurs.
6. The internet providers should build in soft wares that will facilitate delivery of goods
through the internet.
7. The government in their capacity should provide steady electric power supply to enable
the entrepreneurs utilize ICT in business.
76
Limitations of the Study
The researcher encountered the following limitations in the course of the study:
1. The respondents were skeptical in giving out information to the researcher on the grounds
of uncertainty in the use of information.
2. Some questionnaires were not used for analysis because of inappropriate filling and
failure of the entrepreneurs to return the instrument.
Suggestions for further Research
The following suggestions are made for further research:
1. The extent of utilization of ICT in other Zones of Nigeria.
2. Evaluation of access to ICT facilities in other Zones of Nigeria.
3. A study of broadband diffusion as a marketing strategy in Nigeria.
77
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87
APPENDIX A
Table 2: Distribution of Population of Medium and Large Scale Enterprises by States
States Medium scale enterprises Large scale enterprises
Abia 187 98
Anambra 195 101
Ebonyi 149 51
Enugu 219 81
Imo 126 44
Total 876 375
Source: 2008 National Directory, Co-operate Affairs Commission, Abuja
88
APPENDIX B
Table 3:Sample Distribution of Medium and Large Scale Enterprises by states
States Medium scale enterprises Large scale enterprises
Abia 74 98
Anambra 78 101
Ebonyi 59 51
Enugu 87 81
Imo 50 44
Total 348 375
89
APPENDIX C
Department of Adult Education
University of Nigeria
Nsukka.
17th
September 2008
Dear Respondent,
Utilization of ICT Questionnaire
This questionnaire, designed for the Utilization of ICT to Enhance Entrepreneurship in
South-East Zone requires your full co-operation. Your response will be for the successful
completion of the study. You are kindly requested to respond to the items as they apply to
you.
Your genuine response will be treated as confidential.
Thanks for your co-operation.
Yours sincerely
Okeke Nkechi M.
(Researcher)
90
QUESTIONNAIRE ON UTILIZATION OF INFORMATION AND
COMMUNICATION TECHNOLOGY TO ENHANCE ENTREPRENEURSHIP IN
SOUTH-EAST, NIGERIA
Section A: Personal Data of Respondents
Instruction: Tick (√) in the spaces provided the most appropriate to you.
1. Size of Your enterprise:
No of staff:
(i) Medium scale enterprise (101 – 300) [ ]
(ii) Large scale enterprise (301 and above) [ ]
Amount of capital investment:
(i) Medium scale enterprise ( N750,000.00 to N3million) [ ]
(ii) Large Scale Enterprise:( N3million and above.) [ ]
91
SECTION B
Please tick (√) the appropriate column to show the extent to which ICT utilization create
enabling business environment using the following the scale.
S/N Items Very
High
Extent
High
Extent
Low
Extent
Never
1 Awareness building among employees
2 Accessing the website of Corporate Affairs
Commission for enterprise registration.
3 Educating of personnel on e-commerce.
4 Establishing a fair treatment for cross-border
business.
5 To improve computer and internet diffusion
in the country
6 Addressing issues related to cyber crimes,
cyber security and spam
7 Lowing the cost of website maintenance
8 Lowing the cost of computers
9 Developing secure e-payment services.
10 Provision of business consulting services.
11 Provision of business skills education.
12 Provision of enterprise financing
13 Achieving favorable tax and trade policies
14 Seeking sponsorship for computer training
of enterprise employees.
92
SECTION C
The following are ways in which mangers of medium and large scale enterprises could utilize
ICT in enhancing marketing of goods and services. Please indicate the extent to which your
enterprise utilize these practices.
S/N Items Very
High
Extent
High
Extent
Low
Extent
Never
15 Using internet for receiving or sending messages
on existing goods and service.
16 Using phone for communication in business
17 Typing and storing information in the computer.
18 Advertising products and services on the
internet.
19 Advertising employment opportunities in the
internet.
20 On-line purchase of goods and services.
21 On-line delivery of goods and services.
22 Networking with other enterprises through the
internet.
23 Using online price board to get better offers on
supplies.
24 Browsing to get information on the new methods
of services and products from the internet.
25 Using web forum for enterprises to show-case
their products to an international market.
26 Use satellite conference to share knowledge on
new methods of production.
27 Using ICT statistical packages in accounting and
budgeting practices.
28 Using computer to facilitate marketing of goods
and services.
29 Using internet based production function
packages in reducing wastage in production.
30 Increasing customers through websites.
93
SECTION D
This section deals with the utilization of ICT for staff training. Please indicate utilization for
staff training using the following scale.
S/N Items Very
often
Often Minimal Not at all
31 Using web-based lesson for staff training
32 Using cyber guide for staff training
33 Using multimedia presentations for staff
training
34 Using telecommuting projects for training
35 Using computer conferencing for staff
training
36 Using virtual classroom for staff training
37 Using personalized course for staff training
94
SECTION E
To what extent do the following constitute barrier to utilization of ICT
S/N Items Very
High
Extent
High
Extent
Low
Extent
Never
38
Face to face interaction.
39 Privacy of data or security issues.
40 Customers incompetence in using the
technology.
41 Limited number of competent staff.
42 Inadequate electric power supply.
43 Lack of fund to purchase electronic equipment.
44 Incompetence in the use of internet as part of
business strategy.
45 High cost of internet access.
46 None support of business laws for e-commerce.
47 Taxation of internet sales.
48 Inadequate legal protection for internet
purchases.
95
APPENDIX D
98
APPENDIX E
COMPUTATION OF FIELD TRIAL TEST USING CRONBACK ALPHA
Reliability for section b
Reliability Statistics
Cronbach’s Alpha No of Items
.822 10
Reliability for Section C
Reliability Statistics
Cronbach’s Alpha No of Items
.783 8
Reliability for Section D
Reliability Statistics
Cronbach’ Alpha No of Items
.769 7
Reliability for all Section E
Reliability Statistics
Cronbach’s Alpha No of Items
.808 5
Reliability for all the items
Reliability Statistics
Cronbach’s Alpha No of Items
.785 30
107
108
APPENDIX F
109
APPENDIX G
Training Package given to the Research Assistants
Topic: Utilization of Information and Communication Technology to
Enhance Entrepreneurship in South-East Zone, Nigeria.
Introduction
Information and Communication Technology (ICT) is referring to the use of telephone, computer
and internet for faster operation in enterprises.
Purpose of the Study
1. To determine the extent to which entrepreneurs of medium and large scale enterprises
utilize ICT to create enabling business environment. This purpose is aimed at eliciting
information on the extent to which managers use ICT to enabling business environment
in their enterprises.
2. To find out the extent of utilization of ICT in enhancing marketing of goods and
services Purpose two wants to find out the extent the managers have used ICT to improve
their performance in enterprises.
3. To determine the utilization of ICT for staff training. This purpose will elicit
information on how often managers train their staff through ICT.
4. To identify the barriers to utilization of ICT to enhance entrepreneurship. Purpose four
will elicit information on whether managers are experiencing any barriers in utilization of
ICT to enhance entrepreneurship.
Key words were explained as follows:
1. e-commerce is an on-line buying and selling of goods and services via the computer
without learning the comfort of their homes of offices.
2. e-business is used to describe business run on the internet or utilizing internet
technologies to improve the productivity or profitability of a business. This function of e-
business is referred to as e-commerce and the terms are used interchangeably.
3. IT-Information Technology is the study, design, development, implementation, support
or management of computer-based information systems, particularly software application
and computer hardware. It deals with the use of electronic computers and computer
software to convert, store, protect, process, transmit and securely retrieve information.
110
When computer and communication technologies are combined, the result is information
technology.
Respondents
The respondents are entrepreneurs of medium and large scale enterprises. These
managers can be identified by size of employee –
Medium scale enterprise – 1 – 10
Large scale enterprise 11 – 301
Amount of capital investment
Medium scale enterprise – N750,00 – N3 million
Large scale enterprises – N3 million and above
Instruction
Do not give this questionnaire to small scale enterprises.
Session A – D
Items in each session was read and explained.
1. The next training was on how to move around to distribute questionnaire. Distribute
questionnaire to those in a location before moving to the next place.
2. The researcher trained the assistants on how to distribute questionnaire to participants.
Questionnaire should be given to each manager with respect. Introduce your self and your
mission.
3. Trained the assistants on how to assist the participants in responding to the items. They
should not allow each respondent to influence one another in responding to questions.
Each respondents should answer as the questions affects him in his enterprise.
4. Finally on how to retrieve questionnaire. Questionnaire should be retrieved with much
appreciation to the respondents for sparing time to fill the questionnaire.
Summary – Questions were entertained from the research assistants.
111
APPENDIX H
DATA FROM WHICH MEAN WERE COMPUTED
Mean scores of utilization of ICT to create enabling business environment
S/N
Item
Respondents
VHE
(4)
HE
(3)
LE
(2)
N
(1)
X
Standard
Deviation
1 Awareness building among
employees
330 136 40 6
2.69
1.12
2 Accessing the website of Corporate
Affairs Commission for enterprise
registration.
233 134 113 32
2.76
.75
3 Educating of personnel on e-
commerce.
272 158 65 17 3.53 .70
4 Establishing a fair treatment for cross-
border business.
223 192 69 28
3.11
.96
5 To improve computer and internet
diffusion in the country
285 154 53 20
3.32
.84
6 Addressing issues related to cyber
crimes, cyber security and spam
261 171 61 19
3.18
.88
7 Lowing the cost of website
maintenance
252 173 73 14 3.36 .84
8 Lowing the cost of computers 257 168 70 17 3.30 .84
9 Developing secure e-payment
services.
274 158 58 22
3.28
.82
10 Provision of business consulting
services.
255 186 52 19
3.29
.83
11 Provision of business skills education. 262 170 57 23
3.31
.86
12 Provision of enterprise financing 248 162 68 34 3.29 .83
13 Achieving favorable tax and trade
policies
252 153 78 29 3.30 .85
14 Seeking sponsorship for computer
training of enterprise employees.
252 167 68 25 3.20 .92
Grand Mean 3.20 .92
112
Mean scores of the extent of utilization of ICT in enhancing marketing of goods and
services
S/N
Item
Respondents
VHE
(4)
HE
(3)
LE
(2)
N
(1)
X
Standard
Deviation
15 Using internet for receiving or sending
messages on existing goods and services.
274
122
76
40
3.24
.97
16 Using phone for communication in
business
377
101
31
3
1.46
.50
17 Typing and storing information in the
computer.
261
138
75
38
3.24
.97
18 Advertising products and services on the
internet.
158
138
90
126
3.65
.65
19 Advertising employment opportunities in
the internet.
141
141
78
152
3.22
.95
20 On-line purchase of goods and services. 149 145 111 107 2.66 1.15
21 On-line delivery of goods and services. 142 116 104 150 2.54 1.18
22 Networking with other enterprises
through the internet.
142
157
93
120
2.67
1.10
23 Using online price board to get better
offers on supplies.
132
141
110
129
2.50
1.18
24 Browsing to get information on the new
methods of services and products from
the internet.
180
181
98
53
2.64
1.12
25 Using web forum for enterprises to show-
case their products to an international
market.
158
130
91
133
2.55
1.12
26 Use satellite conference to share
knowledge on new methods of
production.
183
167
76
86
2.96
.98
27 Using ICT statistical packages in
accounting and budgeting practices.
182
172
82
76
2.63
1.17
28 Using computer to facilitate marking of
goods and services.
156
214
91
51
2.88
1.08
29 Using internet based production function
packages in reducing wastage in
production.
173
168
114
57
2.89
1.05
30 Increasing customers through websites. 157 135 112 108 2.93 .93
Grand Mean 2.89 .10
113
Mean score of the utilization of ICT for training staff
S/N
Item
Respondents
VO
(4)
O
(3)
M
(2)
NA
(1)
X
Standard
Deviation
31 Using web-based lesson for staff
training
148
147
77
140
3.21
.91
32 Using cyber guide staff training 130 159 83 140 3.28 .61
33 Using multimedia presentations
for staff training
120
158
105
129
2.61
1.17
34 Using telecommuting projects for
training
105
169
101
137
2.57
1.14
35 Using computer conferencing for
staff training
106
174
88
144
2.53
1.11
36 Using virtual classroom for staff
training
106
161
104
141
2.49
1.10
37 Using personalized course for
staff training
108
177
100
127
2.49
1.11
Grand Mean 2.47 1.10
114
Mean scores of the barriers to the use of ICT to enhance entrepreneurship
S/N
Item
Respondents
VHE
(4)
HE
(3)
LE
(2)
N
(1)
X
Standard
deviation
38 Face to face interaction. 195 184 113 20 2.52 1.09
39 Privacy of data or security issues. 223 167 96 26 2.53 .99
40 Customers incompetence in using
the technology.
150
206
126
30
3.07
.88
41 Limited number of competent staff.
144
165
166
37
3.14
.90
42 Inadequate electric power supply.
120
184
161
47
2.92
.88
43 Lack of fund to purchase electronic
equipment.
130
223
132
27
2.80
.93
44 Incompetence in the use of
internet as part of business strategy.
120
249
115
28
2.74
.93
45 High cost of internet access. 156 255 73 28 2.88 .85
46 None support of business laws for e-
commerce.
116
150
106
140
2.10
.82
47 Taxation of internet sales. 125 156 113 118 3.04 .84
48 Inadequate legal protection for
internet purchases.
120
170
103
119
2.49
1.12
Grand Mean 2.57 1.09