Adoption of cloud computing services amongst the micro-enterprise sector in Cape Town

Abstract

Micro-enterprises play a vital role towards the South Africa’s economic growth by contributing towards job creation. Despite the importance of the role of micro-enterprises, micro-enterprises face several challenges such as lack of finance, lack of skilled workers and lack of technological resources. Previous studies indicate that Information Technology has a distinct role in assisting micro-enterprises overcome several challenges. It is further evidenced in the extant literature that cloud computing, provides a low cost entry for enterprises to support several facets of their business operations. In the current era cloud computing requires a constant as well as fast internet connection and the South African government has various interventions to address the infrastructure divide. However, we have a scant understanding of the adoption challenges amongst micro-enterprises to adopt cloud solutions, which to date feature more prominently amongst larger organisations. This research investigated the factors that influence cloud computing adoption in the micro-enterprise sector in Cape Town. This is a city that promotes the contribution of micro-enterprises to their economic activity, and was such an ideal location to investigate cloud computing adoption amongst the micro-enterprise sector. This research provides a rich understanding of the factors that influence micro-enterprises in Cape Town to adopt cloud computing services and proposes guidelines to encourage micro-enterprises in Cape Town to use cloud services to improve their productivity. The researcher uses the UTAUT model as a framework and a qualitative research methodology to investigate the research question. Data for this research study was collected via face to face interviews with semi-structured questions of ten micro-enterprises and an IT expert. The findings showed that the factors influencing the adoption of cloud computing services are performance expectancy, effort expectancy, social influence, facilitating conditions, lack of training, cost efficiency and reduction of working hours.