Barriers to Technology Adoption Among Small and Medium Enterprises
DOI:
https://doi.org/10.64137/31080080/IJFEMS-V2I1P103Keywords:
Small and Medium Enterprises (SMEs), Technology adoption, Digital transformation, Financial barriers, Human capital, Organizational change, Infrastructure challenges, Data security, Access to finance, Competitiveness, Operational efficiencyAbstract
This study examines the major barriers to technology adoption among small and medium enterprises (SMEs), focusing on financial, human, organizational, and infrastructural challenges that limit digital transformation. The goal of this research is to characterize and study the factors that prevent SMEs from adopting new technologies, and to evaluate how some of these barriers have an impact on their competitiveness and performance. A mixed-methods method is used, utilizing existing literature to form an argument supplemented by data collected from SME owners and managers using a survey, which is investigated in terms of description and themes. The results indicate that high implementation costs, lack of access to finance, insufficient technical capabilities, organizations’ resistance to change, poor infrastructure, and worry about data security are the major barriers to the adoption of technology. This research suggests that to support technology use and ensure the long-term growth of SMEs in an increasingly digital business space, addressing these challenges through supportive funded government policies, raising funding accessibility, capacity building on SME training, and improving digital infrastructure is paramount.
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