A Study on Information Technology Problems and Solutions for SMEs

This report explores the landscape of information technology within small business enterprises, highlighting the benefits, challenges, and solutions associated with its adoption. The study investigates the factors influencing IT adoption, including internal resources and external threats like cyber-attacks. Through a combination of literature review, quantitative data from online surveys, and qualitative insights from interviews with small business managers, the research identifies key IT problems such as security vulnerabilities, integration difficulties, and customer service issues. The report concludes by offering practical recommendations for mitigating these problems, including implementing multi-layered security, developing updated hardware and software systems like ERP, and creating comprehensive technology plans. This resource aims to provide SMEs with actionable strategies for leveraging IT to achieve sustainable scalability and enhanced customer satisfaction. Desklib provides access to this document along with a wealth of study resources including past papers and solved assignments.

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

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INFORMATION TECHNOLOGY PROBLEMS AND SOLUTIONS FOR SMALL
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Acknowledgement
Conducting the research study enhances me to improve my knowledge as well as analytical
ability. It gave me the chance to face challenges all the while and conquer them. It will not be
possible to conduct the research without the significant direction of my professors, companions
and every one of who have added to this advancing knowledge. I also want to thank my
supervisor __________ for helping me in my research work as well as give their full support
during the research process. I would also thank all the participants within this study for giving
their time and helping me out. From the support of people, I am inspired to work on the research
in this subject area. Finally, thank you to my family members those help me and encourage me.
Thank You.

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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.

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Table of Contents
Chapter 1: Introduction....................................................................................................................5
1.0 Background of the study...................................................................................................5
1.1 Rationale................................................................................................................................6
1.2 Problem Statement.................................................................................................................8
1.3 Research Aim, Objectives and Questions..............................................................................8
1.3 Hypothesis.............................................................................................................................9
1.4 Research Structure.................................................................................................................9
Chapter 2: Literature Review.........................................................................................................10
2.0 Concept of Information Technology...................................................................................10
2.1 Concept of Small business enterprises................................................................................11
2.3 Adoption of IT in small companies.....................................................................................12
2.4 Factors influencing adoption of IT......................................................................................14
Internal factors.......................................................................................................................14
External factors..........................................................................................................................16
2.5 Conceptual framework.........................................................................................................17
Chapter 3: Research Methodology................................................................................................18
3.1 Introduction:........................................................................................................................18
3.2 Research outline:.................................................................................................................18

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3.4 Research Philosophy:...........................................................................................................19
3.4.1 Justification for determination of the picked Philosophy:................................................20
3.5 Research Approach:.............................................................................................................20
3.5.1 Justification for determination of the picked Approach:..................................................21
3.6 Research Design:.................................................................................................................21
3.6.1 Justification for determination of the picked Design:.......................................................22
3.7 Data Collection Procedure:..................................................................................................22
3.7.1 Data Sources: Primary and Secondary.............................................................................22
3.7.2 Data Techniques: Qualitative and Quantitative................................................................23
3.8 Population and Sample:.......................................................................................................23
3.8.1 Sampling Technique:........................................................................................................23
3.8.2 Sample Size:.....................................................................................................................24
3.8.2 Sample Size:.....................................................................................................................24
3.9 Ethical Considerations:........................................................................................................24
3.10 Research Limitations:........................................................................................................25
3.11 Gantt chart.........................................................................................................................26
3.12 Summary:...........................................................................................................................26
Chapter 4: Data findings................................................................................................................28
4.0 Quantitative analysis............................................................................................................28
4.1 Qualitative data findings......................................................................................................33

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Chapter 5: Data Analysis...............................................................................................................35
Chapter 6: Conclusion and recommendations...............................................................................38
6.0 Conclusion...........................................................................................................................38
6.1 Recommendations................................................................................................................39
References......................................................................................................................................40

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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

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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.

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Figure 1: Reasons of not adopting IT
(Source: Chrisman, Fang, Kotlar & De Massis, 2015)
Cyber-attacks and other security threats have created a massive loss to the small business
enterprises in the market. The revenue for the small business enterprises have been small, on
which the loss of data and information due to the cyber-attacks have made to worse of the
companies (Doppelt, 2017). The use of several entities in the market with the help of information
technologies have been maintaining in the market. The effect of the information technology on
the business organization in the market has been discussed in the study.
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.

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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
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. The integration of information
technology in the business have been creating issues including customer satisfaction ad their
growth in the market. Different security issues have been identified on the study due to
implementation of the information technology. This has created problems in small business
companies related to data and financial loss in the market.
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

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 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.
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

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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). 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 (Ritala