Barriers to the adoption of cloud services by SMEs in South Africa.

Abstract

Abstract This research looks at the barriers faced by Small and medium enterprises (SMEs) , in South Africa in accessing cloud computing services. This research is drawn from a survey carried out from a sample drawn from businesses mainly located in Durban. The upswing in entrepreneurship activities experienced in South Africa implies that SMEs have the potential to play an even greater role in driving the economic growth on the country. These gains can only be consolidated if the country can reduce the high failure rate in SME growth. It was asserted that 75% of new SME do not become established firms. Information and communication technology (ICT) is acknowledged as an enabler in the growth of enterprises and some studies have focussed on the role that ICT in general plays in SME growth in South Africa. Few have however delved deeper and looked at ICT adoption in the cloud computing context and the barriers encountered. In this forum, some studies show that strides made in the cloud computing revolution have theoretically levelled the playing field in terms of providing SMEs with access to affordable ICT services, in a way that gives them a competitive advantage similar or beyond that which bigger firms have. The focus of this study was on ascertaining the current uptake of cloud computing services by SMEs in South Africa, with a view of identifying barriers that hinder the full adoption of the same. 210 SMEs were chosen for this study based on their profile. Out of 210 questionnaires sent only 43 responded, representing a response rate of 20 %. The data was captured in a QuestionPro database. From the analysis using the unified theory of acceptance and use of technology (UTAUT) framework, it was found that, Facilitating Conditions (FC) significantly influenced SME Use Behaviour for cloud computing technology while Performance Expectancy (PE), Effort Expectancy (EE) and Social Influence (SI) were statistically insignificant, on influencing Behavioural Intention (BI) to adopt cloud services. However, Behavioural Intention significantly influenced Use Behaviour (UB) for cloud services. The sample used in this study was fairly small, due to resource constraints, it is the researcher’s recommendation that a follow up study with a larger sample be conducted if resources allow. The most significant limitation was on unreliable contact listing for SMEs resulting in many SMEs not being reachable.