Challenges and Opportunities for E-commerce Adoption by SMEs in Egypt: An Action Research Study

E-commerce adoption by Small and Medium Enterprises (SMEs) in Egypt is an area of growing interest due to its potential to enhance market access, productivity, and competitiveness. The study employed an action research approach, involving semi-structured interviews with 50 SME owners/managers across various sectors of Egypt's economy. Data collection was conducted from January to June , focusing on perceptions and experiences related to e-commerce adoption. SMEs in Egypt face significant barriers such as inadequate digital infrastructure, lack of training, and resistance to change, with over 60% indicating these challenges hinder their e-commerce efforts. However, the proportion of SMEs actively using e-commerce platforms is rising, from 25% in to 40% by . Despite initial challenges, there are clear opportunities for growth and innovation within the Egyptian e-commerce landscape if these barriers can be effectively addressed. The study's findings suggest a dynamic environment where e-commerce adoption is on the rise but requires targeted interventions to accelerate its impact. To facilitate further e-commerce adoption by SMEs in Egypt, policymakers should invest in digital infrastructure development and implement training programmes for business owners. Additionally, fostering an enabling regulatory environment can encourage more SMEs to embrace online commerce.