Corporate telecommunications infrastructure as a service provider for small medium and micro enterprises

Abstract

South Africa has been classified as an upper-middle mcome developing country with a growth rate of 2.6%. In order to improve the quality of lives of all its citizens that includes the lowering of the unemployment rate, South Africa needs to achieve a growth rate of not less than 7%. One of the pre-requisites for economic growth is entrepreneurship. The SMME sector has been universally accepted as having the potential for generating employment and contributing to economic growth. In South Africa the SMME sector is a major contributor to the economy. Research has revealed that SMMEs fail in the first five years of start up or. stagnate in terms of development because of lack of skills, management expertise, finance and lack of basic infrastructure (such as electricity, physical premises and telecommunication). South Africa's entry into the global economy makes it imperative for businesses to have access to Information Communication Technologies regardless of the size of the business. The de-regulation of the Telecommunication Act 106 of 1996 made provision for SMMEs to provide telecommunication access to under serviced areas. This is a double-edged opportunity for the Durban Institute of Technology (M L Sultan campus) in that, the Durban Institute of Technology (M L Sultan campus) could become a Service Provider for Telecommunications access and at the same time provide SMMEs within its vicinity with Information Communication Technology access. This research outlines the various elements that a Higher Education Institution such as the Durban Institute of Technology (M L Sultan campus) needs to take into consideration for developing a Business Model to provide Information Communication Technologies to SMMEs within the vicinity of the Durban Institute of Technology. A sample of the SMMEs around the Durban Institute of Technology (M L Sultan campus) was interviewed to determine their ICT needs and their understanding of the impact of access to ICT on their business. It was found, inter-alia, that many SMMEs had no access what so ever and that there was a lack of understanding of the potential impact of ICT on their enterprise.