Could digital maturity for small businesses have an exponential impact on their economies?
By Sebuh Haileleul
Can you imagine going back to a world where we were a couple of decades ago – before being online and before the internet? Just thinking about that is difficult, and to imagine that time is almost incomprehensible. How did we survive before this online world of connectivity and cloud, with answers readily available at the stroke of a key or the swipe of a screen? How did we manage running late for a meeting or lunch with a friend before having the ability to send a quick message, announcing our anticipated late arrival?
It is estimated that over 3.6 billion people are now online worldwide per Internet World Stats, (approximately 50.1% of the global population)[1], whilst Africa has an estimated internet penetration of 28.7% with 341 million internet users currently. Although the African penetration percentage is still behind compared to the worldwide trends due to a variety of reasons including electricity and other infrastructural challenges, the number is continuously growing as more African countries deploy infrastructure solutions. One would expect internet penetration to be at a higher percentage with businesses compared to individual users, as being online is no longer an option for business owners, including small business owners who experience faster growth and job creation compared to their counter parts who are not online.
Now can you imagine a continent where small businesses are still not online and where they still do not share in the cloud economy that is digitally disrupting the world of business as we know it? No? I cannot either.
Having a closer look at four of the Eastern and Southern geographies in Africa, it will become apparent that there are interesting comparisons to be made between the % of internet and mobile penetration to the GDP Real Growth rates. Although the assumptions are based on a small sample, it makes for interesting debate.
Botswana, Rwanda, Zambia and Zimbabwe statistics on internet and mobile penetration can be compared as follows looking at the CIA world fact book[2] as well as the Internet World Stats below:
| Country | Internet Penetration (% of the population) | Mobile Penetration (subscriptions per 100 inhabitants) | GDP Real Growth rate (2015 est.) |
| Botswana | 31.2% | 159:100 | -0.3%* |
| Rwanda | 24.8% | 163:100 | 7.1% |
| Zambia | 20.4% | 77:100 | 3.6% |
| Zimbabwe | 16.4% | 90:100 | 1.5% |
*The Botswana growth rate Ihas been struggling over the last year primarily due to the massive downturn in the global diamond market
Looking at these statistics broadly, with making some general assumptions, it is interesting to note a direct correlation for three of the four countries when comparing the internet penetration to the level of GDP growth. In this sample of four, it could be generally stated that countries with higher internet penetration showed higher GDP % of real growth. A very similar scenario is presented with regards to mobile penetration, where higher subscriptions per inhabitant loosely translates to higher GDP real growth.
Would it not make sense then that SMEs across Africa should embrace the notion of getting their businesses online, whether it be initially managed through mobile only, or a fully functioning, multi-dimensional online approach. Technological savvy businesses are seen to be growing almost twice as fast as those who do not embrace technology, and in a country, such as Rwanda, where the government has taken extensive steps to improve infrastructure and connectivity, real lessons can be learnt about how to embrace this digital wave of growth.
To further capitalise on being online, it is important for SMEs to have their digital marketing approaches aligned to the notion of wanting to become technologically advanced. No small business should be functioning in Africa without a digital marketing approach that taps into improving their website presence, e-communication, social media, podcasts, videos and any other digital marketing, as part of their marketing approach. Digital marketing is much more affordable than the traditional ways of marketing, and highly aspirational. (See the link to a very good online resource for marketing and PR toolkits: www.biz4afrika.com)
Another critical part of being connected in the cloud for a small business is to have access to the tools that can help them to get things done quicker, simpler and more effectively. Productivity tools such as emails and task management solutions greatly help in improving productivity for small business owners. Managing the finances of the business successfully is also critical to the sustainability of the SME long term, and there are several online financial tools that can greatly assist small business owners to maintain their books in a fiscally compliant way.
So, if you are a small business owner wanting some help to grow your business, one of the simplest steps you can take to start the growth is to get your business completely online. It will not cost your life savings, but will bring you certain business growth.
Do not miss this opportunity of real growth. The proof is in the numbers. The opportunity is real.
The author is Microsoft Country Manager East and Southern Africa: Botswana, Rwanda, Zambia, Zimbabwe
[1] http://www.internetworldstats.com/stats.htm
[2] https://www.cia.gov/Library/publications/the-world-factbook/rankorder/2003rank.html
