Analyzing Information Technology Problems and Solutions for SMEs

This report examines the adoption of information technology (IT) in small business enterprises (SMEs), highlighting both the benefits and the associated problems. It begins by establishing the importance of IT for SMEs, noting its potential to improve efficiency and effectiveness. However, the report also identifies risks such as cyber-attacks and online threats that arise from IT implementation. The research aims to identify these problems and propose solutions. The study employs a positivism philosophy with a deductive approach and uses a descriptive design to analyze the impact of IT on small businesses. Data is collected through online survey questionnaires and interviews with managers of small businesses, and analyzed using both qualitative and quantitative methods. The report covers various aspects, including the concept of IT, the concept of small businesses, factors influencing IT adoption (both internal and external), and provides a conceptual framework. The findings aim to assist SMEs in strategic management and customer satisfaction by addressing IT-related challenges.

Running head: INFORMATION TECHNOLOGY PROBLEMS AND SOLUTIONS FOR
SMALL BUSINESSES
Information Technology Problems and Solutions for Small Businesses
Name of the Student
Name of the University
Author’s Note

1
INFORMATION TECHNOLOGY PROBLEMS AND SOLUTIONS FOR SMALL
BUSINESSES
Abstract
This paper discusses about the concept of information technology in the small business. The
benefits of adoption of information technology in the small businesses have been discussed in the
study. The aim of the research s to identify the problems of information technology in the small
businesses and recommending its strategies.
The research paper has focused on the concept of the information technology and small business.
The factors affecting the adoption of information technology in the small businesses have been
analyzed. The impact of adoption of information technology in the small business have been
discussed.
The research has followed positivism philosophy with deductive approach. The descriptive
design of the research has helped in analyzing the impact of the information technology on the
small businesses. Data has been collected from both primary and secondary sources. Online
survey questionnaires have been constructed with 6 close ended questions. Interview has been
conducted with three managers of different small businesses. Data has been properly analyzed by
both qualitative and quantitative analysis method.

2
INFORMATION TECHNOLOGY PROBLEMS AND SOLUTIONS FOR SMALL
BUSINESSES
Table of Contents
Chapter 1: Introduction....................................................................................................................4
1.0 Background of the study...................................................................................................4
1.1 Rationale................................................................................................................................5
1.2 Problem Statement.................................................................................................................7
1.3 Research Aim, Objectives and Questions..............................................................................7
1.3 Hypothesis.............................................................................................................................8
1.4 Research Structure.................................................................................................................8
Chapter 2: Literature Review...........................................................................................................9
2.0 Concept of Information Technology.....................................................................................9
2.1 Concept of Small business enterprises................................................................................10
2.3 Adoption of IT in small companies.....................................................................................11
2.4 Factors influencing adoption of IT......................................................................................12
Internal factors.......................................................................................................................12
External factors..........................................................................................................................14
2.5 Conceptual framework.........................................................................................................15
Chapter 3: Research Methodology................................................................................................16
3.1 Introduction:........................................................................................................................16
3.4 Research Philosophy:...........................................................................................................16

3
INFORMATION TECHNOLOGY PROBLEMS AND SOLUTIONS FOR SMALL
BUSINESSES
3.4.1 Justification for determination of the picked Philosophy:................................................17
3.5 Research Approach:.............................................................................................................17
3.5.1 Justification for determination of the picked Approach:..................................................17
3.6 Research Design:.................................................................................................................17
3.6.1 Justification for determination of the descriptive Design:................................................18
3.7 Data Collection Method:......................................................................................................18
3.7.1 Data Sources: Primary and Secondary.............................................................................18
3.7.2 Data Techniques: Qualitative and Quantitative................................................................19
3.8.1 Sampling Technique:........................................................................................................19
3.8.2 Sample Size:.....................................................................................................................19
3.8.2 Sample Size:.....................................................................................................................20
3.9 Ethical Considerations:........................................................................................................20
3.10 Research Limitations:........................................................................................................20
3.11 Gantt chart.........................................................................................................................21
3.12 Summary:...........................................................................................................................21
References......................................................................................................................................23

4
INFORMATION TECHNOLOGY PROBLEMS AND SOLUTIONS FOR SMALL
BUSINESSES
Chapter 1: Introduction
1.0 Background of the study
Information technology has been an emerging technology in the market. Small business
enterprises have been using this technology for developing the business in the market. Due to
various advantages of IT in the market, numerous number of SMEs are adopting the technology
in the market. However, there are some different cases in the adoption of the information
technology by the SMEs and by large companies in the market (Nguyen, Newby & Macaulay,
2015). The use of the IT in the business is very dependent in the infrastructure and talent of the
employees in the company. The use of the IT can be both positive and negative for the business.
The use of different sources of applications on the company helps in maintaining different
operations on the company (Harris & Patten, 2014). The IT applications have been refurnishing
the growth of the company in the market. Various information technology including cloud
computing and ERP implementation have been mostly used by the SMEs in the market (Abebe,
2014). These technologies have been helping in maintaining the development of the company in
the market by multiplying the production and managing services provided by the company.
However, new technologies are carving the market by innovating new techniques of business
in the market. The implementation of IT in the small business enterprises have led to increase in
risks including cyber-attacks and other online threats (Schaper, 2016). Therefore, various
solutions have been created by the IT for mitigating these problems in the small business
enterprises. These solutions include use of hardware and software for internet security, updated
antivirus and ERP systems for proper management of the operations in the company (Hashim,
2015). The use of these techniques have helped in initiating the growth of the company in the

5
INFORMATION TECHNOLOGY PROBLEMS AND SOLUTIONS FOR SMALL
BUSINESSES
market. These technologies have been replacing traditional way of working into modern
technological approach.
This research deals with the problems in using information technology in the small business
enterprises. Various problems have been identified in the study due it the implementation if the
information technology in the small business enterprises (Verbano, Crema & Venturini, 2015).
However, IT solutions have been provided with respect to the problems in the business. The
study has helped in accessing strategic management in the business organization. This research
will help in attaining a proper customer satisfaction level in the market that might help in
increasing the growth of SMEs in the market.
1.1 Rationale
Information technology have helped in providing an opportunity to the businesses for
improving their efficiency and effectiveness in the market. Information technology has embarked
various opportunities in the market along with various risks for small business enterprises
(Tarutė & Gatautis, 2014). The implementation of the IT in the business have led to several
online threats and risks including cyber-attacks and phishing (Gray, 2017). Therefore, there are
different cases evolved in the market that has been creating problems for the small business
enterprises affecting the business.
In the current scenario, cyber-attack has been increasing in the market. According to a
survey, there has been increase in the number of cyber-attacks by 7% all over the internet
(Seethamraju, 2015). The use of the information technology has been creating massive amount if
cyber threats in the market. The use of various technologies in the small business enterprise have
been maintaining the management of business organization.

6
INFORMATION TECHNOLOGY PROBLEMS AND SOLUTIONS FOR SMALL
BUSINESSES
Figure 1: Reasons of not adopting IT
(Source: Chrisman, Fang, Kotlar & De Massis, 2015)
This research has put light in the benefits of implementation of information technology in
the small business enterprises. This research has helped on identifying the threats and risks
involved due to the implementation of information technology in the small business enterprises.
The use of various IT solutions have been provided in the study that might help in maintaining
the risks in the small, business organization.
1.2 Problem Statement
Small business enterprises always look for various opportunities for developing in the
market. Different technologies including information technology have been emerging in the
market. Small business enterprises have been adopting information technology for developing
their businesses in the market. The use of information technology have helped in maintaining the

7
INFORMATION TECHNOLOGY PROBLEMS AND SOLUTIONS FOR SMALL
BUSINESSES
business and profit of the business. The IT applications have helped in providing extra features to
the working force of the company (Yeboah-Boateng & Essandoh, 2014). However, there are
some limitations and problems included in the adoption of the information technology.
Information technology have given rise to the cyber-attacks in the company. The online threats
and security issues have been a major problem in the context.
1.3 Research Aim, Objectives and Questions
The aim of this study is to identify the problems and solutions to those problems in the
small business companies due to implementation of information technology.
The objective of this research are as follows:
 To identify the IT structures and technologies in a small business
 To critically analyze IT problems and issues faced by small business
 To identify solutions to these challenges faced by small business
The research questions are as follows:
 What are the internal IT structures and technologies in a small business?
 What are the information technology problems and issues faced by small business?
 What are the solutions of technology issues in small business?
1.3 Hypothesis
H0: Information technology have positively affected small business organization.
H1: Information technology have negatively affected small business organizations in the market.

8
INFORMATION TECHNOLOGY PROBLEMS AND SOLUTIONS FOR SMALL
BUSINESSES
1.4 Research Structure
Figure 2: Research structure
(Source: Created by author)
Chapter 1: Introduction
Chapter 2: Literature Review
Chapter 3: Research Methodology
Chapter 4: Data findings
Chapter 5: Data Analysis
Chapter 6: Conclusion and Recommendations

9
INFORMATION TECHNOLOGY PROBLEMS AND SOLUTIONS FOR SMALL
BUSINESSES
Chapter 2: Literature Review
2.0 Concept of Information Technology
Information technology has been regarded as the most primary tool for the development
of any enterprises in the market. The emerging market of the information technology has helped
in providing opportunity to various business organization in the market. Information technology
has been maintaining and monitoring the business operations in the companies (Cassar, Ittner &
Cavalluzzo, 2015). The set of the information technology has helped in providing an extra
benefit to the workforce of the company. The use of the IT has been providing different
expectations to the business (Agwu & Murray, 2018). Implementation of the technology in the
business organization have been developed in order to enhance the business growth in the
market. The increase in the business in the market has been due to the implementation of
information technology in the market (Cao, Jones & Sheng, 2014). The information technology
include various hardware and software that are helpful in providing business solutions to various
problems in the business.
Small business organizations are looking for opportunities and innovative ideas for
developing their small company into a big company. The use of several models and techniques
have helped in providing a basic architecture to the company in the market. The contribution of
IT in the development of the business has been increasing on a daily basis. Productivity has been
focus of the information technology in any company (Kurnia et al., 2015).
2.1 Concept of Small business enterprises
Small and medium sized companies are creating a new innovative market in the world.
Small businesses have been a growing sector in the market that includes a number of small

10
INFORMATION TECHNOLOGY PROBLEMS AND SOLUTIONS FOR SMALL
BUSINESSES
companies and startups. The capital or the small business is not large so that they can avail
advance technology from the market. The employee base of the company are nit good as there is
very less growth in the companies (Dahnil et al., 2014). These small businesses help in
maintaining the market of the big companies by taking projects from them. Many big companies
have been providing their projects to the small companies that helps in completing their projects
on time. The use of the technology in the small business have been minimum quality. Therefore,
the use of the information technology in the companies might be a great relief for them. The use
of the information technology in the small companies help in providing a conceptualization view
to the employers of the company. Various department of the companies have been working
together for the development of the company in the market (Awa, Ojiabo & Emecheta, 2015).
Small companies are looking or the opportunities in order to develop their company in the
market. The sales and marketing team of the company needs to be upgraded with proper training
among employees. The flexibility in the organizational structure has been more than that of the
big companies. The hierarchy in the organizational structure has been low. This help in fast
completion of tasks by small companies (Johnson, 2015).
2.3 Adoption of IT in small companies
The IT has been covering a wide range of business organization in the market. The
adoption of IT in the market has been helped in maintaining the business of the company. The
use of the IT in the small business organization has been maintaining the financial condition of
the company in the market. There have been various perspective of the adoption of IT in the
small business including proper infrastructural change and ERP (Carcary, Doherty & Conway,
2014). The use of these policies in the management might help in monitoring variety of decision-
making terms and condition in the market. The use of the IT has been helping in providing a

11
INFORMATION TECHNOLOGY PROBLEMS AND SOLUTIONS FOR SMALL
BUSINESSES
variety of decision-making factors. The organizational behavior might be changed in various
manners by the adoption of the IT (Ainin et al., 2015). The adoption of the IT in the SME have
helped in enhancing the development of the company in the market. The IT adoption in the small
business have helped in maintaining the sales of the company in the market (Braojos-Gomez,
Benitez-Amado & Llorens-Montes, 2015). Organizational behavior of the managers in the small
business have been changing with the implementation of the IT in the companies (Ramayah,
Ling Taghizadeh & Rahman, 2016). The IS/IT adoption in the companies have helped in
maintaining the growth of the companies in the market. The customer satisfaction level of has
been an important factor in the adoption of the IT in the small business. However, there are
different factors that have been driving the adoption of the IT in the small business.
Figure 3: Adoption of IT n Small business
(Source: Bharati & Chaudhury, 2015)