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Start a Business, Get a Credit, Make an Impact: Do ICTs Help? Impact of ICT on Legitimization of SMEs

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  • Sergey Samoilenko

    (Averett University, USA)

  • Kweku-Muata Osei-Bryson

    (Virginia Commonwealth University, USA)

Abstract

It is well known that small and medium enterprises (SME) are important drivers of economic growth, particularly in the countries of Sub-Saharan Africa (SSA). However, typically many SMEs operate as informal enterprises which limits their access to finance. Access to appropriate levels of credit (i.e., get credit) is generally a necessary condition but not sufficient condition for improvement in socio-economic outcomes (i.e., make impact). Thus, improving access to credit is still a desirable goal. This paper uses a DEA-based multi-method approach to explore the “ICT Capabilities & Going Legit & Get Credit & Make Impact” path. The results show that there are statistically significant links between ICT Capabilities and legitimization of SMEs (i.e., going legit), ICT capabilities and get credit, and going legit and get credit. Given this desirability of improving access to credit (i.e., get credit), these results suggest that the increasing the level ICT capabilities should result in increases in the levels of going legit and get credit.

Suggested Citation

  • Sergey Samoilenko & Kweku-Muata Osei-Bryson, 2020. "Start a Business, Get a Credit, Make an Impact: Do ICTs Help? Impact of ICT on Legitimization of SMEs," International Journal of Information Communication Technologies and Human Development (IJICTHD), IGI Global, vol. 12(2), pages 29-47, April.
    • Handle: RePEc:igg:jicthd:v:12:y:2020:i:2:p:29-47
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