Technological and Economic Factors Determining ICT Level: Evidence from Rural Micro†Businesses in Democratic Republic of Congo

Raquel Perez†Estebanez, Elena Urquía†Grande and Antti Rautiainen

Journal of International Development, 2018, vol. 30, issue 1, 118-133

Abstract: The Democratic Republic of Congo (DRC) is the 11th largest country in the world although wars have devastated the economics of the country. In this vast but poor area, there are a lot of small businesses, particularly in agriculture. Therefore, focusing on small enterprises and their use of Information and Communication Technologies (ICT) can be a key issue in enhancing the nation's infrastructure, communications, social relations and economy. This research aims at increasing our understanding of these issues together by analysing the effects of ICT in micro†level businesses in a developing country. The research focused on the rural neighbourhood of Ngandanjike in the area of Mbujimayi in south DRC. Two hundred agricultural micro†entrepreneurs were randomly surveyed by a Non†Profit Organisation (NPO) about their current situation regarding their ICT use, ICT access, mobile phone use, ICT education level and accounting information systems. Multivariate statistics models were used in the data analysis. After analysing the regression of the six ICT factors and additional financial data as total revenues and total assets, we found that micro†entrepreneurial total assets are connected with management accounting with ICT, ICT education level and ICT adoption. We contribute to existing research by adding empirical evidence, at a microeconomic level of agricultural micro†enterprises, on the effects of ICT access and use as an engine of local economic growth. Additionally, this research can impact policy decisions regarding micro†entrepreneurs, seeking to reduce poverty by understanding what ICT factors are most valued and most needed by these micro†entrepreneurs to help them with sustainable economic activity and to alleviate the poverty. Policy makers need to emphasise training and motivation for micro†entrepreneurs in order to deepen their ICT knowledge and to help their business. Copyright © 2017 John Wiley & Sons, Ltd.

Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jintdv:v:30:y:2018:i:1:p:118-133

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