Action Plan for SME e-Business Support for 2008-2013Action Plan for SME e-Business Support for 2008-2013 for the Government of Lithuania

Authors: Takis Damaskopoulos, Rimantas Gatautis
Series: Study
Publication Date: July 2008
Category: Premium Membership

This study constructs the basis of the national Action Plan for SME e-business support for 2008-2013 in the Republic of Lithuania. It has been commissioned to the Institute of Interdisciplinary Research (EIIR) by the Information Society Development Committee under the Government of the Republic of Lithuania. The aim of the Plan is to encourage and assist small and medium size enterprises (SMEs), to use Information and Communication Technologies (ICT) in a way that will maximize their business performance and competitive advantage. Effective use of ICT across all sectors of the economy can act as a driver to increase competitiveness. ICT connectivity across the European Union (EU) is widespread in businesses of all sizes. SMEs, however, lag significantly behind larger firms in adopting ICT which in turn compromises and limits their economic potential and competitiveness.

Principal reasons for non-adoption are lack of applicability and incentive to change business models, especially when returns of investments in ICT are unclear. SMEs also face generic barriers to adoption including trust and transaction security and intellectual property rights (IPR) protection concerns, and challenges in areas of management skills, technological capabilities, productivity and competitiveness.

The issues for governments throughout the EU are to foster appropriate business environments for e-business and ICT uptake, and target programs to overcome market failures to the extent that they are needed in particular areas (e.g. skills formation, specialized information). Governments have a range of SME e-business and internet use programs. However commercial considerations and potential returns are the principal drivers of SME adoption and profitable use.