The understanding and adoption of e-finance by small and medium enterprises (SMES)

This study seeks to find out what the understanding and adoption of e-finance is by small and medium enterprises (SMEs). The study defines the concepts related to efinance namely, e-services and micro-finance and well as other related IT for development concepts. Firstly, the study identifies benefits of adoption and use of efinance as decreased transaction costs, increased access to financial information and increased access to financial products and services. Secondly the barriers to the adoption of e-finance are identified as poor privacy, security and safety; poor IT telecommunications infrastructure; uncertain IT regulatory and policy and low T training and skills. The results produced by the study confirm a high understanding of e-finance amongst SMEs and all benefits and barriers are confirmed except for one, decreased transaction costs. The study recommends that further research be conducted on this benefit as it may no longer be relevant, especially for developing countries. Limitations of the study include the relatively small sample size and snowballing sampling method used