SMEs’ Information Infrastructure and Access to Finance

Many economies worldwide remain heavily dependent on SMEs, particularly for their role and contribution, which remains globally an important source of employment creation opportunities and poverty reduction (Kreslins et al., 2018; Ackah & Vuvor, 2011; Nejadirani et al., 2011). Despite these great prospects that SMEs provide in terms of socio-economic development, challenges facing Small and Medium Enterprises are many, whether globally or typically in the entire African continent. In general, challenges such as the ability to adapt to rapidly changing market demands; technological changes and capacity constraints relating to knowledge; innovation and creativity; lack of resources (limited access to finance, technology, skilled labour, market access, and market information); lack of economies of scale and scope; higher transaction costs relative to large enterprises; lack of networks that can contribute to a lack of information and experience of domestic and international markets; increased market competition and concentration from large multinational enterprises caused by globalisation and economic integration; inability to compete against larger firms in terms of R&D expenditure and innovation (product, process, and organisation); subject to churning and instability; lack of entrepreneurial zeal, capacity, and know-how; lack of databases; insufficient use of information technology; low R&D expenditures; and undeveloped sales channels and low levels of financial inclusion are amongst the critical barriers affecting the growth of SMEs in various world countries (Yoshino & Hesary, 2016).