SMEs and the digital divide

Evaluating the socioeconomic risks of technological stagnation in small and medium sized enterprises

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(By B G K R Gamage)

SMALL and medium-sized enterprises (SMEs) form an integral part of the national and global economy, playing an important role in the circulation of capital and development of the region.

In spite of the different criteria for the definition of SMEs, they have generally been defined as non-subsidiary, independent, and autonomous economic entities, where the number of personnel employed is less than a specified number, and they also meet specific criteria for their turnover and balance sheet. In the current scenario, SMEs range from small-scale retail stores and manufacturing enterprises to service providers. However, in spite of their significant role, a large segment of the SME sector is found to be in a state of lag due to the high prevalence of an alarming lack of technological awareness and adherence to outdated and antiquated business practices. In this regard, it is no longer optional but imperative to bridge this knowledge gap for the maintenance of economic vitality in the dynamic and evolving environment.