Obstacles for SMEs for E-Adoption in the Asia Pacific Region

INTRODUCTION The e-commerce revolution has affected all organizations. Of particular interest is its effect on small and medium-sized enterprises (SMEs), because we can observe an interesting duality, where these companies are most likely to benefit from the opportunities afforded by e-commerce (because through e-commerce, it is possible to level the playing field), and yet they appear to be slowest in embracing many of these e-commerce possibilities. On several social and economic grounds, SMEs are of overwhelming importance in most of the Asia Pacific/Pacific region. In fact, they comprise well over 90% of all enterprises in this region and provide employment for over half of the region's workforce (Wattanapruttipaisan, 2002; APEC, 2001). Typically, the SME sector accounts for upwards of 90% of all firms outside Given the importance of SMEs to this region, it becomes crucial to understand the obstacles they are facing. First, we must understand why e-commerce adoption has been slow, if it occurs at all, for these SMEs, and then suggest changes to policy that may enable the alleviation of such obstacles, and hence, the successful embracing of e-commerce for these SMEs. What follows is a brief synopsis that serves to outline the key factors hindering SMEs' participation in e-commerce and the obstacles to SMEs for e-adoption in the Asia Pacific region.