African Small Business Management | 22 September 2010

SME E-commerce Adoption Challenges and Opportunities in Egypt 2010

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Abstract

This study examines the challenges and opportunities faced by Small and Medium Enterprises (SMEs) in adopting e-commerce platforms within Egypt. A structured survey questionnaire was administered online to a diverse sample of Egyptian SME owners across various sectors. The data collected were analysed using statistical software to determine patterns and correlations related to e-commerce challenges and opportunities. The analysis revealed that high transaction costs (72%) and limited internet connectivity (65%) are the most significant barriers to e-commerce adoption among SMEs in Egypt, while government support programmes (30%) and digital literacy training (40%) stand out as major facilitators. SMEs face substantial challenges in implementing e-commerce strategies due to financial constraints and infrastructure gaps. However, supportive policies and enhanced digital education can significantly boost their online presence and profitability. Policymakers should prioritise funding for SME e-commerce initiatives and implement targeted digital literacy programmes. Additionally, fostering an enabling environment through tax incentives and streamlined regulations could accelerate the growth of Egypt's e-commerce sector.