A Review of the E commerce Barriers Faced by the SMEs in Africa

Abstract

This paper aims to convey a review of the issues that Small and Medium Enterprises (SMEs) face when trying to ensure their alignment with the Electronic Commerce (E-commerce) in Africa. The paper defines the SMEs and E-commerce from different views and goes in a general discussion about the importance of e-commerce for the SMEs in both developed and developing countries. It has been noticed that African SMEs have been left behind; many reasons led to that left over. This has been a subject of research for the last few years worldwide, especially in developing countries. Through the literature review, the difficulties or barriers to adopt the e-commerce by the SMEs look apparently more or less the same with some differences when it comes to the country location, politics, environment and whether it is a developed or developing country. The study will also highlight the literature review of the mobile commerce (M-commerce) usage in Africa and the penetration of the smartphone in this continent and its effects on the e-commerce adoption. Africa was chosen for this review for many reasons including, but not limiting to its contribution role in the world economy and the availability of its business opportunities now and in the future. These business opportunities can reduce African unemployment issues. This study will concentrate on the African e-commerce adoption barriers faced by the SMEs and suggest solutions to facilitate the adoption process. The paper reviews and surveys the selected literature on the key factors affecting the e-commerce adoption by the African SMEs. The discussion clarifies the obstacles preventing African SMEs from introducing, applying and adopting successfully the e-commerce concept which are concluded as internal and external barriers. The paper could be very helpful for researchers, investors, policy-makers and whomever interested in the impact of e-commerce in African SME development.