Can you Run a Business Without a Computer?

I cried, for I had a slow broadband connection, until I met a

businessman who had no computer."

If that sounds like a joke, think again. In the four most

populous regions in Asia-India, China, Indonesia and the Philippines-as many

as 75% of small businesses that employ under 100 staff don't own any

computers. In real terms, that's about 15 million businesses out of a total of

21 million SMEs (small and medium enterprises) across just these four nations.

Despite all the hoopla about computing being affordable and PC

prices having shrunk to commodity levels, up to three-fourths of businesses don't

see a reason to deploy one. This despite the fact that these four countries

alone have a combined population of 2.74 bn and a combined gross domestic

product (GDP) of $3.32 tn. That alone should make businesses salivate at the

hope of being able to sell more products and services using PCs and information

technology.

Raju Chellam

According to the latest study by Access Markets International

(AMI) Partners, about 67% of small businesses (commercial companies that employ

under 100 people) in China, 76% in the Philippines, 78% in India and a whopping

82% in Indonesia don't have a single PC. The bulk of these small businesses (SBs)

in these four countries belong to the wholesale and retail vertical sector. The

exception is China, where more than 50% of non-PC-owning SBs are in the

manufacturing sector.

What hinders them from buying a computer? The primary hurdle is

the belief that PCs are not relevant to their line of business. About 30% of SBs

in India and 14% in China say that they just have not thought about buying PCs.

A significant portion of these SBs believe that a simple fax and phone is enough

for their business. The moot question: Can you really run a business without a

computer?

Yes and no. In today's context, it is like asking similar

rhetorical questions: Can you live a decent life without electricity? Can you

function well without a phone? Can you travel the world without airplanes? Yes,

you can do without some of those privileges some of the time, but not all the

time. Similarly with computers. It is a different issue if you can't afford a

PC. But where money is not an issue, but growth is, then as a businessman, can

you really grow your business without a PC?

Frankly, I don't think any reader of this magazine will

believe anyone can grow his business without a single PC or computer. However,

if you flip the coin, this very "problem" becomes a huge untapped

"opportunity" for computer/simputer vendors, hardware/software

companies and channel/training partners. It's a huge opportunity to bring

awareness to the unaware, to train the mass of uninitiated businessmen, and to

convert what is clearly the majority. Whoever wins this battle wins the war.

Why do you need to convert them at all? Because, as the world

becomes a global village, as the Internet closes the buying-selling cycle, the

next customer will not walk in through the door. He may jump in with an order

via the Internet. He may come from a country that the SB hasn't heard of, and

may place orders that the SB hasn't dreamed of. Can the SB grow by shutting

out this opportunity?

It is not just governments, banks and IT vendors that need to

help the SB to become aware of the potential to grow his business. There is a

need to create a general awareness about the changing nature of business itself.

And that technology is just a tool, not an end in itself. A tool to redeem

yourself from your current station in life. And to grow your small business to a

medium business and give it wings to attract customers from around the world.

The writer, a former Dataquest editor, is currently vice

president (Asia-Pacific) with Access Markets International (AMI) Partners, based

in Singapore. He can be reached at raju@ami-partners.com