Readiness to E-commerce Adoption by Micro and Small Enterprises in Small Town: A Case study of Vyas municipality, Nepal

Abstract

E-commerce has tremendous potential to promote growth for micro and small-scale enterprises (MSEs) in both developed and developing countries. This thesis was aimed to investigate the current status and future direction to the adoption of e-commerce by micro and small enterprises. A questionnaire survey was conducted to collect data from 70 MSEs as samples located in Vyas Municipality, Tanahun. Then the factor analysis was carried out using KMO and BTS test in SPSS software. From 29 questions variables total five factor were found naming Awareness, Human resources, Technology Use, Finance, and Market Readiness. The result show that the overall scale value of all five factors was 3.205, indicates the poor level of e-commerce adoption. Among five factor human resources availability was most supportive factor with scale value 2.749, and market readiness perception of enterprises was the most discouraging factor with scale value 3.975. Even though 76 % of the enterprises were capable to adopt e-commerce based on technology available and knowledge of ICT, only 33% of the enterprises were ready to adopt e-commerce. In developed country only online payment system have been using for payment but from result it was clear that, in Nepal cash on delivery have been still preferred payment system compared to online transaction. Findings show that the important inhibiting variables are lack of internal trust, lack of awareness, incapability of dealing with rapid change, and lack of online transaction system. As per the preference of the respondents and literature review B2B and B2C integrated e- commerce system was proposed for the future implementation.