Management Development in Managers and Entrepreneurs of SMEs - Essay Example

? Case Study Report: Management Development in Managers and Entrepreneurs of SMEs Andreas Strovolides ID: 139899631 Words: Address: 2 Silicon Way, IQ Shoreditch, Room 1318, Old street London N1 6ST Table of Contents: Page 1.0. Introduction Continuous Professional Development (CPD) is a highly significant part of management development, especially in modern times where technology has advanced in an unprecedented manner (Shaw and Green, 1999; Megginson and Whitaker, 2003). Similarly, most of the business organizations in the present will have to rely heavily on technology to achieve profitability and success (Narayanan, 2001; Phaal et al., 2001). Technology also has a major role in the marketing activities as well as selling and buying of goods and services as most of the customers use computers and internet for their business transactions. Therefore, managers in the modern day will have to keep themselves abreast of the latest developments in technology. Some of the older generation managers, however, are not savvy to the latest technology such as internet and computers nor do they fully appreciate the role of technology in the success of business units. Thus, they become incapable of utilising the possibilities of technology to tap the best potential of their organisations. However, if such people were to be put through a well defined process of CPD, by identifying the areas for development and addressing these learning requirements, it can “enable change to occur” and to “make the driving forces outnumber the restraining forces” and effectively integrate their knowledge and managerial skills into business success (Megginson and Whitaker, 2003). 2.0. Case study summary This paper considers a case study analysis of management development in the area of learning and development of individual managers or entrepreneurs of SMEs in Whyalla city in Southern Australia. Whyalla is an “industrial city” having a population of about “25000” and the small business organisations currently confront many threats while at the same time has many opportunities due to the “growth in mining sector” in the region (Sawyer and Evans, 2010). The case study relates to the findings of a research carried out by the South Australia University’s Centre for Regional Engagement (CRE) in collaboration with Whyalla Economic Development Board (WEDB) to ascertain the deployment of internet technology for “online trading by small businesses” (Sawyer and Evans, 2010). The purpose of the study has been to develop awareness of technology in the managers of small business organisations to enhance the capabilities of local business and, thus, “increasing their sustainability” (Sawyer and Evans, 2010). The CRE is the sole regional campus of the University of South Australia in the region and it is committed to the cause of “learning and capacity building of individuals and groups within the region” through organising various activities (Sawyer and Evans, 2010). On the other hand, WEDB, an organisation funded by the government, seeks to facilitate the “business growth” in the region through fostering an “enterprise culture” and helping SMEs to “prosper and expand” (Sawyer and Evans, 2010). As a means to achieve their objectives, these organisations have collaborated to enable “capacity building” in the managers or entrepreneurs of these organisations to make them effective in the management of their businesses (Sawyer and Evans, 2010). 3.0. Self-learning in small organisations Organisations usually provide some or other form of in-house training to its employees as well as managers to hone their skills and knowledge as well to keep them abreast of the changes in technology. Accordingly, Noe (2004) defines training as planned instruction in regards to specific skills which is intended to result in changed manners in the workplace. However, in small organisations, the entrepreneurs who usually manage them do not get ample opportunities for training or getting the guidance of a mentor. Therefore, the most practical and effective method for them to access the knowledge required for developing their skills is through self learning (Mankin, 2009). Individual learning can be perceived as the capability of a person to “pursue self development” through the assessment of existing skills and those required to handle specific tasks, reflecting on the personal strengths and weaknesses and taking action to fill the gaps in knowledge (Dalton, 2010; Mankin, 2009). The case study of SMEs in Whyalla identifies a major challenge for their managers in terms of their lack of knowledge in computers and internet technology coupled with the problem that most of them will not be in a position to engage the services of “internal staff with specialised computer expertise” (Sawyer and Evans, 2010). In this backdrop, the Australian Business Network has recognised the need for supporting SMEs for a “web presence” so as to enable them for the easy exchange of information and engage in marketing activities to optimise potential of their organisations (Sawyer and Evans, 2010). Thus, the aforesaid case study has envisaged a “qualitative investigation” involving face-to-face interview with the managers or entrepreneurs of the SMEs in the region (Sawyer and Evans, 2010). It transpires that in most of the SMEs, the management is handled by the owners themselves and, therefore, the primary focus of development of managerial skills in such entities will orient towards the entrepreneurs (Martin & Matlay, 2003; Spence & Rutherfoord, 2001). The process of learning managerial skills and developing them covers a diverse “mix of design and delivery methods” and the owners/managers of SMEs should indentify the best method of learning that is appropriate to the needs and deliverables of their organisations (CERN, 2012). Therefore, the case study under analysis has designed the interview questions to specifically ascertain the online trading behaviour of the organisations and also to know how their management felt about doing transactions through online means. 78% of the participants were above “45 years” of age and they have been running their business over a long period of time and the researchers felt that these factors may contribute to their “technology phobia” (Sawyer and Evans, 2010). The study has further corroborated that only “28%” has deployed internet for both buying and selling activities while “33%” used it for buying and “6%” for selling (Sawyer and Evans, 2010). Besides, the majority of organisations do not have a web presence on the pretext that their business is not “suited to selling online” or for the reason of the lack of adequate knowledge or time for such activities (Sawyer and Evans, 2010). The data emerging from the study thus reasonably establishes the prevalence of the phobia factor. 4.0. Information and Communication technology There is no denial of the fact that Information and Communication Technology (ICT) has “transformed the way modern business is conducted,” enabling business entities to “exchange large amounts of information quickly” and it can “enhance the key role that SMEs play” in the economic developments of nations (Internet Use for Business Development: An Introductory Set of Training Modules for Policy Makers, 2007). Besides, organisations that have allowed a “dominant role” for information technology has been able to attain “cost efficiency” (Great Expectations: The Changing Role of IT in Business, 2006). From the case study, it emerges that the managers or owners of the SMEs in Whyalla region have not been able to optimize the full potential of their business organisations due to factors such as technology phobia or the lack of knowledge about technology. Therefore, they have been precluding themselves from engaging in active online business strategies to enhance their quality of service and thus increasing their profitability. On the other hand, if they were to engage in self learning to hone their managerial skills they would have been in a position to update their knowledge and skills as well as acquire knowhow in the technology and thus handle the technological requirements for creating a web presence, which could make their businesses more profitable. It becomes relevant here that the “attitude and managerial skills” of the owners/managers are the crucial success factors in SMEs and hence they should develop their skills (Final Report of the Expert Group on Management Capacity Building, 2006).The research also points to the key areas where the SMEs have been lacking such as using e-mail communications for cost effectiveness, speed and ease, searching the internet for gaining “product information” etc (Sawyer and Evans, 2010). However, the case study contends that “35%” i.e. one-third of the managers of these SMEs are keen on creating a web presence for e-business and thus the challenge derives from creating “awareness and interest” in the remaining 65 percentage of owners/managers (Sawyer and Evans, 2010). 5.0. Research and its outcomes In the given premise, the University of South Australia, in conjunction with its stated objectives of “Educating professionals, creating and applying knowledge, engaging our communities,” embarked on a mission of supporting the SMEs through a project involving the students of Computer and Internet Science to create web presence for two clients (Sawyer and Evans, 2010). The objective was to address their “existing skill deficiencies” which may affect the “competitiveness” of their businesses (Bolden, 2007). One was a boutique selling females’ “clothing and accessories” and the other a “scuba diving business” and two students were involved in creating the websites for these organisations (Sawyer and Evans, 2010). The former had an existing website that they linked to an “online payment system” and latter was provided with a brand new website (Sawyer and Evans, 2010). On a positive note, the owners of both these business expressed their willingness to maintain the website on their own rather than outsourcing the task to third parties. The students remained in close rapport with the business owners for a period of two months, to properly acquaint with them on various aspects of website maintenance, training and guiding them in handling the technology. In this context, it is noteworthy that the personal interest that both the managers have shown to handle the maintenance rather than designating outsiders for doing the job, is the main factor that enabled them in learning the process. Thus, it transpires that the personal interest of the managers to learn plays a key role in the development of managerial skills in individuals. In the case study, the university has required the students to maintain a journal to record their personal reflections on the project and their experiences while handling it. Both the students reported “positive experience” and both commented that doing the project for two clients that did varying nature of business with different technological requirements “worked really well” (Sawyer and Evans, 2010). Based on the experience of the students and feedback of the business owners, the case study has contended that if smartly designed solutions are provided to them, SME owners/managers are “eager to maintain them” and it was easy for these individuals to update as well as maintain their websites (Sawyer and Evans, 2010). The case study further emphasises that when business owners/managers receive the support for discovering new ways of acquiring and using any new skill for the purpose of enhancing the business, they will become capable to take over the “ownership of the initiatives” (Sawyer and Evans, 2010). The case study concludes that the target group of small business organisation managers or owners have several constraints in terms of lack of adequate knowledge of technology as well as “time constraints” that hamper their ability to optimise the potential of available technology that comes at cost effective investments (Sawyer and Evans, 2010). Therefore, it can be construed that if they are able to address the lack of knowledge through self development and learning managerial skills, they will definitely be able to acquire the knowhow that can be translated into the profitability of their business organisations. Research evidence also suggests that “knowledge and skills are critical factors” in business and the “source of competitive edge” (Newton, 2001). Therefore, to make their business ventures successful, the managers/owners of SMEs need to upgrade their knowledge base and skill sets. In this context, it is needless to mention that the SME owners in the region, who have received the support for continuous learning in their profession, will be able to make use of the knowledge they acquired during the project in the continued maintenance of the websites and thus tap the benefits of internet communication and online trading in their business enterprises. 6.0. Conclusions The main factors that emerge from the case study can be segmented into three aspects: (a) the lack of knowledge of business owners and managers entails technology phobia, which may preclude them from using technology for the optimisation of their business potential (b) proper support will encourage managers to acquire new knowledge and accept the challenge of having to explore the possibilities of emerging technologies (c) when knowledge is facilitated, business managers will acquire the skills and knowledge necessary for maximising their potential. In the case study, most of the managers were initially not inclined to use technology, apparently due to their lack of knowledge about it and its potential in their business. However, when they were offered a supportive environment to learn and explore they have been willing to accept the challenge and make best use of the potential. The significance of self learning to develop proper managerial skills becomes evident from the fact that both the managers of the selected SMEs have shown the willingness to learn and handle the maintenance of the websites themselves. This will facilitate the development of their skills apart from the saving on cost and more importantly they do not have to rely on outside sources for the upkeep and updating of their sites. Thus, it can be evidenced that through the development of managerial skills a firm can attain a high level of operational and administrative capabilities that will finally reflect on its profitability. The case study further finds that in small firms, the owners or managers have a key role as most of the decision making and control remains with them and they require a large amount of motivation for handling the responsibilities. It is obvious that adequate knowledge and skills are essential for such a manager to handle his or her responsibilities in an appropriate manner and to lead the business to profitability. Managers are the leaders in an organisation and they also have to guide and mentor their subordinates apart from shouldering their own responsibilities. Thus, they need to constantly revise their knowledge by continuously learning and developing their managerial skills. In the modern world, where technology keeps evolving and new methods of communication and business transactions emerge frequently, it is imperative that business managers update their managerial skills to stay ahead in the competition. The best option open to them under the present circumstances is self learning through a process of lifelong learning that will help them update their skills. 7.0. Self Learning Audit An analysis of the above case study has helped me develop proper analytical skills to evaluate different situations and how changes brought in a business organisation helps define its destiny. Through developing an understanding of the effect of technology in the given cases, I have been able to develop my analytical skills by evaluating the situations in both firms before and after the introduction of technology in them. This has enhanced my capability of assessing different situation by comparing the cause and effects of these and analysing how a particular phenomenon can have an impact on the functions of a business entity. Moreover, I also have been able to discern how collaborative support and cooperation entail positive learning outcomes and other mutual benefits to the parties involved. It further has enabled me to recognize how a properly coordinated team work can fetch positive outcomes for all stakeholders. Having the benefits of hindsight would have helped me organize the assignment in a more comprehensive manner by organising the paper based on a wider research data. In fact, till I located the case study, it was not clear to me what aspects of a particular case I would have to focus on identifying the managerial issues and offering solutions for addressing the same. While most of the concepts have been covered in the class and through the additional readings that I have done, the unique situation that the case study has offered were unexpected. However, the experience of doing this exercise has been quite rewarding, especially in terms of knowing from the specific instance how the collaboration of university students with business entities in the community has benefited all the stakeholders including the students, business owners and the community at large. If I had known specifically of such a coordination of activities among the various stakeholders to the mutual benefit of all, I would have focused more on the collaboration factor that specifically fetches the mutual benefits to a varied group. 8.0. Reference list Shaw, M. and Green, H. (1999). Continuous Professional development: emerging trends in the UK. Quality Assurance in Education, 7(3), 169-176. Megginson, D. and Whitaker, V. (2003). Continuing Professional Development. Charted Institute of Personnel and Development, London. Narayanan, V.K. (2001). Managing Technology and Innovation for Competitive Advantage, in: Gindy, N.N.Z; Gerit, B. and Hodgon, A. (2006). Technology roadmapping for the next generation manufacturing enterprise. Journal of Manufacturing Technology Management, 17(4), 404-416. Phaal, R., Farrukh, C.J.P. and Probert, D.R. (2001). Structuring a systematic approach to technology management: concepts and practice, in: Gindy, N.N.Z; Gerit, B. and Hodgon, A. (2006). Technology roadmapping for the next generation manufacturing enterprise. Journal of Manufacturing Technology Management, 17(4), 404-416. Swayer, J. and Evan, N. (2010). Collaboration between higher education and the Economic Development Board: Using service learning to provide e-business support for regional small businesses. Studies in learning, evaluation innovation and development, 7(2), 55-63. Dalton, K. (2010). Leadersip and management development: Developing tomorrow's managers. Pearson education limited. Martin, L.M., & Matlay, H. (2003). Innovative use of the Internet in established small firms: the impact of knowledge management and organisational learning in assessing new opportunities. Qualitative Market Research: An International Journal, 6(1), 18–26. Spence, L.J., & Rutherfoord, R. (2001). Social responsibility, profit maximisation and the small firm owner-manager. Journal of Small Business and Enterprise Development, 8(2), 126–139. CERN, 2012. Learning and development policy, [online] Available at: [Accessed 20 April, 2013]. Moon,S., Birchall, D. and Williams, S. (2005). Developing design principles for an e-learning programme for SME managers to support accelerated learning at the workplace. The Journal of Workplace Learning, 17(5/6), 370-384. Delors, J. (1996). Learning, The Treasure Within, Report to UNESCO of the International Commission for Education for the 21st Century, in: Moon,S., Birchall, D. and Williams, S. (2005). Developing design principles for an e-learning programme for SME managers to support accelerated learning at the workplace. The Journal of Workplace Learning, 17(5/6), 370-384. Bolden, R. 2007. Leadership Development in SMEs: Designing a Customised Solution. GITAM Journal of Management, Vol.5(3), pp.40-53. Available at [Accessed on 29 April 2013]. Final Report of the Expert Group on Management Capacity Building. 2006. European Commission. Available at [Accessed on 29 April 2013]. Great Expectations: The Changing Role of IT in Business. 2006. The Economist Intelligence Unit. Available at [Accessed on 29 April 2013]. Internet Use for Business Development: An Introductory Set of Training Modules for Policy Makers. United Nations. 2007. Available at [Accessed on 29 April 2013]. Learning & Development Policy. CERN Learning Centre. 2012. Available at [Accessed on 29 April 2013]. Learning Strategies for Creating a Continuous Learning Environment. SES Federal Candidate Development Program. 2005. Available at [Accessed on 29 April 2013]. Management: Developing Self Management Skills. Glasgow: Scottish Qualifications Authority. 2007. Available at [Accessed on 29 April 2013]. Newton, K. 2001. Management Skills for Small Business. Small Business Policy Branch, Industry Canada. Available at [Accessed on 29 April 2013]. Sawyer, Janet and Evans, Nina. Collaboration between Higher Education and the Economic Development Board: Using Service Learning to Provide E-Business Support for Regional Small Businesses. Studies in Learning, Evaluation, Innovation and Development, Vol.7 (2), 2010. pp. 55-63. Available at [Accessed on 29 April 2013]. Appendix – Case study Collaboration between higher education and the Economic Development Board: Using service learning to provide e-business support for regional small businesses Abstract This article describes the outcomes of collaborative research between the Business and Regional Enterprise Unit of the University of South Australia’s (UniSA’s) Centre for Regional Engagement (CRE) and the Whyalla Economic Development Board (WEDB) conducted with small businesses operating within the regional city of Whyalla. The findings of this research indicated that there was a need to raise awareness of the advantages of using the Internet. Many businesses in the retail and services sector did not appreciate the benefits of using the Internet and e-commerce and required practical assistance in this area. In response, students from UniSA’s School of Computer and Information Science are assisting regional firms through service learning projects that provide guidance in the design, implementation and maintenance of a Web presence. Partnering with the WEDB, the University is working to develop technically aware regional small businesses that are able to compete in a global marketplace. Introduction The Internet offers opportunities for electronic communication and trading in the global marketplace and as such it can provide substantial benefits to a business. However, while access to the Internet is relatively inexpensive and readily available, smaller enterprises have been slow in using the Internet for electronic commerce (Pease & Rowe, 2003). The results of previous studies that investigated the use of the Internet in small and medium-sized enterprises (SMEs) in regional Australia (Blackburn & Athayde, 2000; Darch & Lucas, 2002; Fillis, Johannson, & Wagner, 2004; Hearn et al., 2004; Lawson et al., 2003; Pease & Rowe, 2003; Ramsey et al., 2003) found that these businesses do not use the Internet to its full capacity due to a lack of awareness of the advantages and uses of the Internet; lack of time and IT expertise of managers and staff; technology “phobia” amongst proprietors; concern about security and privacy; and a lack of readily available advice. Hence, there was an identified need for the provision of information on the business benefits of the Internet and for practical assistance in the design, implementation and maintenance of a Web presence (Brown, 2002). This article describes the results of collaborative research undertaken by the University of South Australia’s (UniSA’s) Centre for Regional Engagement (CRE) and the Whyalla Economic Development Board (WEDB) to investigate the current use of the Internet for online trading by small businesses in the Whyalla region with the ultimate purpose of developing technologically aware and capable local businesses and, therefore, increasing their sustainability. Background Whyalla is an industrial city, located on the Upper Spencer Gulf in South Australia, with a population of approximately 25 000 people. Small businesses in the city are currently facing both threats and opportunities as a result of growth in the mining sector in South Australia. The Whyalla campus of the CRE is the only regional university campus in South Australia. It seeks to be responsive to its community and through its engagement activities contribute to the learning and capacity building of individuals and groups within the region (Penman & Ellis, 2003, p. 1). The WEDB was a government-funded organisation established in 1980 with the aim of “strengthening the economic base of Whyalla,” “facilitating business growth” and “fostering an enterprise culture by assisting small and medium businesses to prosper and expand” (WEDB, 2009, 2006, pp. 4–5). This body has recently been superseded by the new Regional Development Boards. Key objectives of the WEDB were to support the creation and implementation of programs and projects that facilitate employment, and economic and community development for the region of Whyalla. In turn the CRE has a commitment “to contribute to economic, environmental and social development in collaboration with local councils and community groups, government agencies and industry” (University of South Australia, 2002, p. 2). Capacity building is a crucial component of community development, as it has the potential to transform communities according to Penman and Ellis (2003). In an article on community engagement between the CRE and the community of Whyalla, Penman and Ellis (p. 8) refer to “mutualism” in regional university-community links. They quote from a Community Business Partnership manifesto, which refers to a university and its community as “subsets of each other” which are “inextricably part of each other” (p. 8 ). Penman and Ellis argue that mutually beneficial collaboration between university and community can “provide more efficient and long-term solutions to community issues and build greater social cohesion.” Small businesses often face substantial risks in relation to their computer-based information systems (Igbaria et al., 1999; Lee & Runge, 2001). De Castro (1999) identified a lack of critical mass; lack of awareness of the advantages to be gained; lack of financial resources; and lack of standardisation of procedures, equipment and software as problem areas. SMEs usually lack computer knowledge, cannot afford to employ internal staff with specialised computer expertise, and need to rely on outside resources. In addition, SME owner/managers often lack the “strategic mindset” that regards changes in the business environment as a source of potential advantage, rather than as an additional burden on the firm (Condon, 2004, p. 57). The Australian Electronic Business Network (1998) recognises that SMEs should be assisted to establish a web presence for information exchange and marketing purposes, and to implement e-commerce where it would enhance the business. Further, the Small Enterprise Telecommunications Centre (SETEL) suggests that “simplification” and “demystification” are required to allay fears and remove impediments to the use of the Internet and e-commerce, and that in communicating the virtues of the Internet, the focus needs to be placed on the benefits to the business rather than the benefits of technology itself (Brown, 2002, p. 18). The research and its outcomes The research undertaken in 2008 involved qualitative investigation based on structured face-to-face interviews. The interview participants were the owner/managers of small businesses operating in the retail and services sector within Whyalla as this cohort had been identified by the WEDB as a group needing assistance. Interviews were chosen because they provide rich and comprehensive data and enable the interviewer to repeat questions, explain their meanings, and press for more information if a response is incomplete (Burns, 2000; Sweeney, 2007). The owner/manager was chosen to access the potentially strongest influence within the firm. In small businesses, ownership and management are usually not separated and control remains in the hands of the owners, which enables them to make choices about the allocation of resources. Hence, the attention given to and acceptance of a specific issue depends on the attitudes of the owner/manager (Sweeney, 2007); given that the owner/manager is usually the key decision-maker, managerial attitudes are important to the adoption of technology in a small business (Martin & Matlay, 2003; Spence & Rutherfoord, 2001; Sweeney, 2007). The study aimed to investigate the use of the Internet in these businesses to increase market share and expand their operations and whether they used the Internet to buy, market and sell their products and services, with a view to determining how their e-commerce capability could be increased through active collaboration between the WEDB and the local university. The questions asked were: 1. Does your business buy and sell online (via the Internet?) If not, have you ever considered adding this capability to your business? 2. Do you regard the online sales by other Internet-enabled businesses (e-commerce) as a threat to the sustainability of your business? Thirty suitable small businesses were identified from the WEDB database and a written invitation to participate in the research was sent to them. The criterion of firms with fewer than 20 employees was used to select the participants. This aligns with the Australian Bureau of Statistic’s quantitative definition of a small non-manufacturing enterprise (Meredith, 1994). Eighteen of the small business owner/managers expressed a willingness to participate (giving a response rate of Sawyer and Evans, 2010%). During the interviews, notes were taken and the discussion audio-recorded. Recording the interviews allowed the researchers to participate in the discussions as well as taking notes. The interviews were transcribed and reviewed. The interview transcriptions were then summarised using the software NVivo8. It is acknowledged that the use of opportunity sampling, the small sample size, and subjective nature of data collected in qualitative research limit the degree to which the results can be generalised. The majority of the owner/managers interviewed were aged over 45 years (78%, n=14), had been operating their business for more than 20 years (39%, n=7), and employed between one and five people (67%, n=12). The older age of the owner/managers and the extended length of time they had been operating their business is noteworthy as these may be factors contributing to the attitudes of the owner/managers and the “technology phobia” identified by Pease and Rowe (2003) as limiting the adoption of e-commerce. When asked whether they buy and sell online via the Internet as part of overcoming the challenges and risks involved in running their businesses, and whether they had considered adding this capability to their business, it was found that 28% (n=5) of the owner/managers used the Internet to both buy and sell their products; 33% (n=6) used the Internet to buy only; 6% (n=1) to sell only; and 33% (n=6) did not buy or sell via the Internet. The study revealed that the majority of businesses did not have a Web presence, either because their products were not suited to selling online, or due to a lack of time and/or knowledge. Those businesses that had an online presence mostly bought and advertised online. Only one business sold its products online. The comment was made that the customers in the Whyalla marketplace were not likely to be “connected” and, therefore, able to buy online anyway. However, several businesses were currently creating an online presence with the aim of selling online. Some of the businesses had maintained a website in the past, but had not continued with it due to the cost and time involved in keeping it updated. Only three owner/managers (17%) believed the online sales of other Internet-enabled businesses were a threat to the sustainability of their business. This low figure confirmed the concerns of the WEDB. One discussed overseas sites, highlighting that “it’s cheaper to buy a lot of the product from America than in Australia.” A large proportion of the business owner/managers however, considered that the type of product they dealt with and the face-to-face service they were able to provide resulted in competition from online trading being no threat to their survival. Many emphasised the need for personalised service in relation to their product, because they operated in a “touch it, feel it, sort of industry.” In accordance with the research by Blackburn and Athayde (2000), it was found that most of the businesses used the Internet for communications via email and searching to gain product information before purchasing. Few were involved in transaction processing. However, over a third (35%) of the owner/managers said that they would like to establish a website for their business. Many indicated that they did not have the necessary skills to create a Web page or set up an e-commerce site and would need assistance. The challenge, therefore, was to create awareness and interest among the owner/managers who did not have a Web presence and get them to use and evaluate e-commerce. This is where the university and WEDB could play an important role in supporting small businesses in its region. Support via service learning The University of South Australia’s positional statement is “Educating professionals, creating and applying knowledge, engaging our communities” (UniSA, 2007, p. ). On its website UniSA includes service learning as part of its Teaching and Learning strategy as the university believes that the benefits of an individual’s education in civilised societies are not simply those of self-interest, but admit an element of mutuality; a recognition that the societal support of higher education for some carries an expectation that the community as a whole will benefit. (UniSA, 2008, p. ) Service learning is an application of practice-based learning. Specifically, it is an educational philosophy that promotes active learning through community service. Students learn by actively working on a project in the community, thereby contributing to meeting the needs of society. It requires a relationship based on mutuality – the student and the community both benefit. For the students: it builds their resume; builds their self-confidence; provides valuable lessons in citizenship by exposing them to societal issues they might never have encountered; and links them to the community outside the university in a way that benefits all stakeholders (Sanderson & Vollmer, 2000). Hence, the task of assisting regional small businesses with developing a Web presence was an appropriate project to be undertaken by students of the university’s metropolitan-based School of Computer and Information Science (CIS). This six-month project contributed one 4.5 unit module towards completion of their undergraduate Information Technology degree. Two clients were selected for the service learning projects, namely (i) a boutique that sells women’s clothing and accessories to clients of all ages, mainly based in Whyalla and the rest of South Australia and (ii) a scuba diving business that provides services in two distinct areas, namely recreational and commercial diving. Whyalla is the only place in the world where cuttlefish are known to congregate in large numbers to perform a mating ritual and the recreational diving is focused around this unique phenomenon. This includes diving training and certification, excursions, information sessions and boat charters. The commercial diving activities include underwater work such as welding, cutting, repair work and fish farming. The businesses were selected based on their willingness to take part in the program and the owner/managers’ wish to enhance their businesses through a professional Web presence. Small businesses such as these usually approach a Web-design and development firm to design and maintain their websites, which could be very costly. In this case the work was done by two Information Technology (IT) students of the School of CIS at UniSA. The projects involved the design and implementation of an online payment system that is linked to the existing website of the boutique and a brand new Web presence for the diving business. Both business owners also indicated that they would prefer to update and maintain their own websites to keep them current, rather than relying on an outside party. Further, the client requirements were that the students never assumed that the person reading the manual had prior knowledge (keeping the language simple and that all steps are clear), give opportunity for techno-savvy people to be more creative, explain the ‘why’ in many processes and enable the backup of data and maintenance of the equipment. The projects required the students to work closely with the small business owners/managers to gather information on their business models, the different products and services, the image of the business, the required functionality of the website, et cetera. In order to address important maintenance issues, the students remained in close contact with the owners for two months after installation to support them with the initial management of their Web presence. Training in the maintenance of the website was an important part of the process so that the owner/managers were able to be self-sufficient after the design and implementation of the website had been completed. Assessment of student performance is a key part of a service learning program. The students’ accomplishments were assessed on a number of activities such as discussing requirements, iterating through different prototypes, setting up the website, training personnel and preparation of documentation. The projects enabled the students to understand customer needs and appreciate potential barriers to the adoption of information technology in the region. The students were required to keep a personal reflection journal as part of the assessment of the Industry Project course. The entries in the reflection journal indicated that the students had a very positive experience. The comment was made that having two different clients from diverse business and diverse understanding of technology worked really well. Two different solutions designed for two different types of clients worked and it proved that if we are able to smartly design the solution, business owners are eager to maintain it. The reflection also indicated that the students learnt much more than IT skills in the process. They also enjoyed adding value to the community. The clients were extremely pleased with the final product and each client found it really easy to update and maintain the website. The concept of service learning really worked. Our desire to do something for the community was achieved as we were able to successfully put the small businesses in regional areas on a global map. Although we will have to wait another 2 years to see the effect in terms of increase in sales, the thought that we empowered small businesses in regional areas to optimally use technology feels good. As the business owner/managers were assisted to discover new ways of using the Internet to enhance their business, they were able to take ownership of the initiatives. Clients were requested to give feedback on their experience of the service learning project, although no formal assessment was done by the client. The business owner from the local boutique was especially pleased with the final product and found it easy to update and maintain the website. She commented that small business operators are always time poor regardless of how efficient or successful they may be and to have students working with small business owners in the IT area is a great and valuable partnership. Conclusions Small business owner/managers in regional areas face specific problems such as lack of technical knowledge, time constraints that limit the optimal use of technology, and lack of technical support. Research undertaken by the Whyalla campus of UniSA’s CRE investigated the Internet usage of small businesses in the regional city of Whyalla to determine how their e-commerce capability could be enhanced to improve their sustainability in an increasingly competitive market place. In small firms most of the decision-making and control is in the hands of the owner/manager. Therefore, the motivation of the owner/manager is an important factor in the use of e-commerce; it is necessary to understand the motivations of the owner/manager of the smaller firm in order to understand why some firms view technology as an opportunity for business development, while others perceive barriers to embracing such new technologies. It is acknowledged that while some businesses fit well with e-commerce, others sell a product or service not suitable for sale through an online medium. However, even though some firms may provide products or services that are not suitable for selling on-line this does not mean that these services and products cannot be advertised via a Web presence. The University of South Australia is committed to providing its students with not only a strong theoretical education, but also an off-campus experience. Service learning can provide a solution for the lack of technical skills and experience in regional areas and can provide students with a deeper understanding of their course content and how to apply it to the real world, while at the same time, enhancing the probability of success in regional small businesses. Regional Economic Boards can provide a central point for small businesses wishing to become involved in e-commerce. Service learning students can provide practical assistance and the implementation of a web presence. Relationships formed through projects such as the ones described in this article, have the potential to be mutually beneficial to all involved and it is planned to continue offering support to regional small businesses via similar service learning projects in the future. Read More