The use of e-commerce by rural communities for small business development

Abstract

The emphasis on economic development of rural communities, especially small businesses within it has attracted the attention of most local, regional and national governments and non governmental agencies alike. As we move towards technology-oriented global market, community development now becomes a veritable strategy for ''pushing back the frontier of poverty" and maintaining socio-economic stability. This research argues that the deployment and use of appropriate e-commerce technology to facilitate this strategy is useful, and possibly, more suitable than any other tool or strategy. The research further examines the opportunities offered by ecommerce for small business development within the Western Cape. A framework that describes how e-commerce can support the addressing of the specific developmental needs of this community was developed. Six pilot communities involved in the pilot for the Cape Gateway Access Project initiated by the Centre for e-Innovation (Cel) of the Provincial Government of the Western Cape were investigated to find out how appropriate technologies are put to use and how they can be effectively deployed to promote entrepreneurship in these rural communities. The findings of this research reveal that the use of e-commerce by rural communities is a bit complicated. It is found that the availability and use of appropriate e-commerce technologies extend beyond provision of access, to provision of support outside technology and multi-stakeholder approach to addressing the economic situation of rural communities. The findings provide the basis for the recommendations and conclusions drawn in this research. However, the few entrepreneurs identified within the communities are found to be at different stages of e-commerce use. In general, most of the community members are unconsciously engaged in some form of e-commerce ranging from 828, 82C and G2C' , though not as significant as one would have envisaged.