Effect of government incentives on computerisation in small businesses

Effect of government incentives on computerisation in small businesses

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Article ID: iaor19951005
Country: United Kingdom
Volume: 3
Issue: 3
Start Page Number: 191
End Page Number: 206
Publication Date: Jul 1994
Journal: European Journal of Information Systems
Authors: , ,
Keywords: computers, computers: information
Abstract:

This study examines the impact of a government incentive programme on computerisation in small businesses in Singapore. It compares the computerisation experience of 40 small businesses which have participated in the programme with that of 40 small businesses which have computerised without government assistance. The main finding is that participation in a government computerisation programme does not result in more effective information systems. However, there is evidence to show that government incentives, in the form of subsidies, low-interest loans, seminars and technical expertise, lower the barriers to computatisation and make it more attractive to small businesses that would otherwise lack the financial resources and technical expertise to computerise. Some possible explanations of the findings are provided.

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