ICT access and use by microentrepreneurs in Mumbai, India: a value chain model analysis

• Authors: P. Vigneswara Ilavarasan;Mark R. Levy
• Venue: Proceedings of the Fifth International Conference on Information and Communication Technologies and Development
• Year: 2012

On the basis of a survey of 560 microentrepreneurs selected through rigorous random sampling, this paper examines two important precursors to establishing ICT impact: access and use of ICTs. Among the various ICTs, nine out of ten microentrepreneurs owned mobile phones; two percent had computers both at work and home. Fewer than 15 percent of microenterprises studied had workplace computers. Half of the workplace computers were connected to the Internet. Despite the low levels of personal access to the Internet, the microentrepreneurs almost never turned to Internet cafes to access information. Using Duncombe and Heek's value chain model of ICT applications, the paper cautions that ICTs are being underutilized by microentrepreneurs and that, despite the recent rapid diffusion of mobiles, research linking development with ICTs is in the early stages. As to ICT use by those surveyed, half of the computers and one tenth of mobile phones are used in the internal core activities of the microenterprises like calling employees or keeping inventory. Half of computers, where the number of cases is very small and a very small number of mobile phones where the number of cases is very large are used to communicate with suppliers or customers. A small number of computers and no mobile phones were used to access information and aid in decision making. Two-thirds of mobile phones and one-third of home computers are used for networking purposes, which include both family and friends.