THE IMPACT OF MOBILE COMMUNICATION IN THE DEVELOPMENT OF SMALL SCALE BUSINESS

 Abstract

This study is on the impact of mobile communication in the development of small scale business. The total population for the study is 200 staff of selected SMEs in UYo, Akwa Ibom. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made managers, secretaries senior staffs and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

 CHAPTER ONE

INTRODUCTION

Background of the study

In recent years, there has been a rapid growth of mobile phone networks in developing countries. Most of the countries in the developing world have skipped fixed-line infrastructure and leapfrogged directly into mobile technology. Currently mobile telephony is the predominant mode of communication in the developing world. At the beginning of the twenty-first century, the average number of mobile phones per 100 inhabitants in Asia, Africa and Latin America and the Caribbean (LAC) has risen by 100-400% in a span of just five years (Orbicom, 2007).
There are several reasons why mobile phones are considered as particularly important for development. First, beyond basic connectivity, mobile phones offer benefits such as mobility and security to owners (Donner, 2006). Second, due to their unique characteristics, the mobile phone is an especially good leapfrogger: it works using the radio spectrum, as such there is no need to rely on physical infrastructure such as roads and phone wires, and base-stations can be powered using their own generators in places where there is no electrical grid (Economist, 2008). Third, mobile phones only require basic literacy, and therefore are accessible to a large segment of the population. Fourth, mobiles enjoy some technical advantages that make them particularly attractive for development. In addition to voice communication, mobile phones allow for the transfer of data, which can be used in the context of applications for the purposes of health, education, commerce or governance .
Mobile phones and the poor: The introduction of pre-paid technology has significantly increased affordability of mobiles. Currently, mobile phones are used by a broader segment of the population than computers. Despite this trend, studies that explore mobile phone use of the economically constrained are few and far between. Today organizations of all types are utilizing Information and Communication Technologies (ICT) around the globe, not only for cutting costs and improving efficiency, but also for providing better customer service. Governments too, around the world, are adopting ICT to provide better services to their citizens. The adoption of ICT by organizations requires a business environment encouraging open competition, trust and security, interoperability and standardization and the availability of finance for ICT (UNCTAD 2004). There has been a rapid growth in the spread of mobile telephony world- wide, including a particular growth in recent years in developing countries. To take one comparative example, the average growth rate in mobile subscribers in Africa from 2002–2007 was 49% per annum while the figure for Europe was 17% (ITU, 2008). Castells and others warn that we should not take a “year zero”-type approach to understanding mobile telephony, but we can build on pre-existing telecommunications research. In this case, within the literature with a special focus on telecommunications and developing countries, one can identify two particular clusters of work. One set has taken an “upstream” perspective, focusing on diffusion of telecommunications and attendant policies or strategies (e.g., Mureithi, 2003; Courtright, 2004; Rouvinen, 2006). Information and communication technology (ICT) is a force that has changed many aspects of people’s ways of life. Considering such fields as medicine, tourism, travel, business, law, banking, engineering and architecture, the impact of ICT in the past two or three decades has been enormous. The way the fields operate today is vastly different from the way they operated in the past. But if one looks at education sector, there seems to have a little impact of ICT utilization and far less change, than other fields have experienced. However, a lot of people have attempted to explore this lack of activity and influence (Soloway and Pryor, 1996; Collis, 2002). Internet as a marketing tool rather than a technological issue (Dearne, 2001). The global market for ICT-enabled business process management (BPM) which incorporate all sorts of communications, software, web applications and services, ERP-systems, etc. was estimated in 2008 at 1.8 billion dollars and is expected to grow up to 6.2 billion dollars in 2015

1.2 STATEMENT OF THE PROBLEM

As Nigeria is striving hard to play a leadership role in Africa, particularly in the period of pragmatic and computer science and technology, there is an urgent need to pay more prominent attention to the improvement of mobile communication in the development of small and medium scale enterprise. This entails the adoption of information, communication technology (ICT)in the small and medium scale enterprise. The ICT is an invaluable intervention of this modern time. Its inherent attributes such as accuracy, high speed performance, reliability and capability to store very large amount of data have made it possible for its applicability to all human endeavors including small and medium scale enterprises.

1.3 OBJETIVE OF THE STUDY

This study is specifically set out to achieve the following
1. To appraise the role of information, communication technology as a change agent for SMEs

1. It also examines the implication and challenges of ICT on the development of SMEs
2. To increase offering to other state and political subdivisions.
   4. To expand the use of existing enterprise services.
3. To develop customer services using state resources.

1.4 RESEARCH HYPOTHESES

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H₀:   there is no role of information, communication technology as a change agent for SMEs

H₁: there is role of information, communication technology as a change agent for SMEs

H₀²: there are no implication and challenges of ICT on the development of SMEs

H₂: there are implication and challenges of ICT on the development of SMEs

1.5 SIGNIFICANCE OF THE STUDY

The Importance of this research work is to improve the small and medium scale enterprise case of Biotech Business Center usage of information and communication technology in the operations of their enterprise.
It also tends to develop a strategy for improving the workforce productivity that well drives higher value for the organization to drive business goals but most important is for a long term survival and sustain ability.

1.6 SCOPE AND LIMITATION OF THE STUDY

This research work attempted to determine the new trends in the information and communication technology that can improve the productivity and profitability of Biotech Business Center. It also narrows down the essence of information and communication technology [ICT] towards organizational productivity and profit maximize due to the cost reduction benefits of ICT. The scope of the study covers democracy and the problems federalism in Nigeria. The researcher encounters some constrain which limited the scope of the study;

1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
3. c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.

1.7 DEFINITION OF TERMS

MOBILE COMMUNICATION: Mobile communication is talking, texting or sending data or image files over a wireless network. An example of mobile communication is chatting on the cell phone with a friend. An example of mobile communication is sending email from a computer using a wireless network at your local coffee shop.

DEVELOPMENT: The process of developing or being developed

SME: Small and medium-sized enterprises or small and medium-sized businesses (SMBs) are businesses whose personnel numbers fall below certain limits. The abbreviation “SME” is used in the European Union and by international organizations such as the World Bank, the United Nations and the World

BUSINESS: A business (also known as an enterprise, a company, or a firm) is an organizational entity and legal entity made up of an association of people, be they natural, legal, or a mixture of both who share a common purpose and unite in order to focus their various talents and organize their collectively available skills