African Journal of Finance | 17 May 2003
Challenges and Opportunities for E-commerce Adoption by SMEs in Egypt: An Ethnographic Study
A, h, m, e, d, E, l, -, K, h, a, y, a, t, t, ,, R, a, n, d, a, S, u, l, e, i, m, a, n, H, a, m, e, d
Abstract
Egypt represents a significant emerging market for e-commerce, particularly among small and medium-sized enterprises (SMEs). The country's economy is characterized by high levels of informality and limited access to traditional banking services. The research employs an ethnographic approach, involving participant observation, semi-structured interviews with 30 SME owners and in-depth discussions with key informants from the Ministry of Industry and Commerce. Data collection was conducted over a period of six months through fieldwork in Cairo and Alexandria. SMEs in Egypt face significant challenges related to infrastructure limitations (65% reported unreliable internet connectivity), regulatory hurdles (30% cited issues with e-commerce regulations), and lack of digital literacy among employees (40%). However, they also perceive opportunities such as increased market access (70%) and cost savings (25%). Despite prevalent challenges, Egyptian SMEs demonstrate considerable willingness to adopt e-commerce. This study provides valuable insights into the specific barriers and facilitators of e-commerce adoption in a developing economy. Government policies should focus on improving internet infrastructure and simplifying regulatory requirements for e-commerce. Additionally, targeted training programmes could enhance digital literacy among SME employees. Egyptian SMEs, E-commerce Adoption, Ethnographic Study