Small businesses constitute an important part of developing countries’ economies. They are considered to operate on low technological levels. However, in the growing discussion on information and communication technologies (ICTs) and economic development small businesses have been identified as major potential beneficiaries of ICTs’ rapid evolution. Evidence, whether small businesses in developing countries manage to participate in these developments have, so far, been scarce. This work analyses in depth the use of ICTs in small businesses based on empirical data from the Indian Small-Scale Industry sector. Patterns of ICT penetration and use are described. Models of ICT adoption and usage intensity are developed and tested. The impact of ICTs on the enterprises’ development is assessed.

The Author: Dietrich Müller-Falcke studied economics at the Universities of Göttingen and Glasgow. He obtained his Ph.D. from the University of Göttingen in 2001. From 1996 to 1998 the author worked as scientific advisor to the ZDH Partnership Programme, a project to promote small business associations in South and South-East Asian countries. In 1998 he joint the Center for Development Research at the University of Bonn as junior research fellow working on «ICT for development» with a special focus on small businesses. Currently Dietrich Müller-Falcke is with DETECON Consulting, Bonn, as strategy and management consultant in international telecommunication markets.