IT Investment in SMEs in the UK

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The objective of this study is to determine if any home grown solutions can be found for increasing the levels of IT investment in SMEs in the UK; and this will be achieved by conducting both primary and secondary research. A literature review will be conducted as part of the secondary research, and this will introduce certain theories that are relevant to this topic area, such as the theories of competitiveness, an introduction to SMEs and IT.


An area of the UK will be chosen for this survey, preferably an area where the author resides to reduce the costs associated with travel and to increase survey response. No personal information will be made public and participants will be notified of this. The author will use online and library resources to obtain a list of SMEs in the selected area. As a result of the methodology, the research will largely be descriptive as it will be collecting information from surveys (Creswell 2003). The research will also be explanatory because the author will attempt to provide an explanation between IT investment and productivity in SMEs (Creswell 2003). This also means that the research will be largely qualitative.
Small and medium sized enterprises (SMEs) are considered to benefit the economies they serve, as they create employment and attract investment into certain areas. However, due to their size they are not able to always access and enjoy the advantages of much larger companies. For instance, large enterprises often have direct access to international and local capital markets, as they can afford the transaction costs (Enterprise Development Agency 1998). ...
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