ANALYSIS OF TECHNOLOGICAL INFLUENCE IN SMALL

SCALE BUSINESSES

Presented to

The Public School of Tinajeros National High School

In Partial Fulfillment

of the Requirement of Research I

By

Balbarona, Carmela

Baldicañas, Cherry Ann

Brizuela, Junel

Cerezo, Raven Ann

Longno, Berlyn

Magsipoc, Rex John

Sy, Caljerome

Sy, John Cyrille

Saboriendo, April Jane

 Introduction
Today we live in an information society in which more people must manage more

information, which in turn requires more technological support, which both demands and creates

more information.

Electronic technology and information are mutually reinforcing phenomena, and one of

the key aspects of living in the information society is the growing level of interactions we have

with this complex and increasingly electronic environment. The general consequence is that we

deal with large volumes of information, new forms and aggregations of information, and new

tools for working with information Marchionini, 1997. These new tools we use to manage

information at corporate, governmental and societal level are tools we must learn to use, pay for,

and maintain. The primary tool of the information society is the computer. Microprocessors are

used to improve the performance of other technologies, and computers are increasingly used to

control and integrate other kinds of information technology (e.g. TV, radio, telephones).

Innovation is fast becoming a crucial factor in company performance and survival as a

result of the evolution of the competitive environment. The importance of product innovation for

good long-term company results is now widely recognized and has been extensively reported in

the literature. Innovation consists of successfully implementing creative ideas within an

organization. Small firms have long engaged the interest of students of innovation. The

innovative efforts of small firms embody a tension between serious barriers and distinct

advantages relative to large firms. Establishing empirically the balance between these forces

involved investigating whether small firms innovated more or less efficiently than large firms.

Small and medium industries (SMI) are generally dominated by labor intensive industries that
have relatively short chain so that the creation of added value is also relatively small

(Department of Industry, 2008).

According to (SLC,2016) Small businesses are nimble because they can adapt to

changing marketplace conditions and product innovations faster. They're typically service-

focused, because they often live in the communities they serve. Small businesses keep local

economies strong produce more patents than large corporations that could be because employees

are given more freedom to innovate, work independently and make decisions. This may be why

small businesses tend to attract workers who are able and willing to think creatively when it

comes to solving problems and using technology.

Is the technology will help the technology to improve the production and services of

small scale businesses? Or it will become worst part of small businesses for them to

malfunction? Does technology innovates and make the operations faster? Is their any challenges

that arises from technology?

Background of the Study

The role of ICT sector on economic growth has been studied in the past and it has been

proven to have a significant positive effect on it. Since the economic slowdown in the early

1990’s, there has been a debate on how much ICT sector affected the following economic

growth. Several studies have been conducted where sectors with wide use of communication

technologies have been compared to ones that use them less. These studies have resulted in the

fact that communication technologies have boosted the economic growth. (OECD 2003)(van
Ark, Inklaar & McGuckin 2002) According some researches, IT’s impact on productivity has

actually been larger than the amount if capital invested in it (Brynjolfsson, Hitt 2000).

In the Finnish society, the ICT sector has traditionally had a large impact on the Gross

Domestic Product (GDP). According to Pohjola, the sector makes up 10 % of totaGDP in the

Finland. In 2006, the ICT sector made up 0,8 of 2 % productivity gains. In the OECD report, no

other country exceeds this amount (OECD 2003). Pohjola continues by claiming that technology

is the single most important factor that affects the increase of productivity, and general purpose

technologies, such as communication technologies, have a significant impact on economic

growth. The other two factors that impact productivity gains are investments on both physical

and intellectual capital. Technology increases productivity in three ways: by increasing the total

productive in manufacturing, by increasing the productivity of work through use of new

technologies and by implementing new working methods that the new technologies enable.

(Pohjola 2008)

One of the biggest reasons of the reliance to communication technologies is that they

enable the possibility of communicating over time and space (Belanger, Collins 1998). Members

of the organization simply cannot work today without continuous communication. But the issue

of dispersed time and space is not only a positive one,companies also face the problems

occurring from the fact that people no longer work in the same shared context of traditional

office (Bélanger, Allport 2008). It is easy to understand what possibilities video- and

teleconferencing with people around the globe offer, but one should also consider the problems

about issues such as time zone differences and possible individual isolation (Fritz, Narasimhan &

Hyeun-Suk Rhee (1998). Another issue that has increased the need of communication

technologies is the growing amount of data and the need of shared decision making. Project
oriented work has become a common way of working. Most knowledge workers are, at any

single time, part of several different projects. Having to coordinate, store and share information

are essential for any project group. Communication technologies play a key role in making this

happen, but are these technologies used in an efficient way? Companies that can provide an

integrated way of communicating inside these project groups can provide workers with huge

time savings if they offer the right type of knowledge, at the right time and in and easily

understandable form.

In addition to providing profit for its shareholders, organizations increasingly have to

consider society and its business environment. Organizations are not only about increasing the

performance of the company; they are social entities that are composed of numerous individuals.

Companies are responsible to their shareholders on their performance aspect, but they also have

to consider other stakeholders when conducting business. The employees of a company are one

of the most important stakeholders and they are the ones that organization provided ICT for job

completion. Therefore,companies have the responsibility of both conducting profitable business

and taking care of their employees. Increasing productivity can sometimes be achieved by

increasing the workloads of the employees. Moreover, an increasing debate has been on the

issues of remote work and mixing of employees’ personal time and work. In today’s society the

welfare of employees is one of the responsibilities that companies have to deal with.

Also, the amount of information that workers transmit during their normal work days has

grown and so has research on how people actually deal with the increased amount of information

and the communication associated with it. According to Finland National Knowledge Society

Program, today’s society requires various skills to deal with information. Skills such as,

capability to absorb knowledge readily, complicated problems solving, independent searching of

information, information creation and innovation are seen as essential in the future. The report

also notes that in the increasingly networked society the capabilities to perform work in various

contexts and the sharing of information become important. Imposing such requirements on

individuals’ skill levels certainly seem prone to affect the everyday work they

do.(Valtioneuvosto 2006)

One of the most discussed issues has been information overload and how people cope

with this phenomenon. According to Eppler (2004), information overload is simply a notion of

receiving too much information. The classical view of information overload is that overload

occurs when, within a given time period, information processing requirements are greater than

the capacities for processing it (Galbraith 1974). Similarly, the marketing discipline compares

the volume of information supply with the processing capacity of the individual. Information

overload occurs when supply exceeds demand. In addition, inside today’s organizations, it is not

only about the amount of information transferred, but also what type of information is being

transferred. Increasingly, individuals are associated with knowledge work. Therefore the amount

of effort that is used in deciphering and decoding information has grown.

An important question is whether these technologies are used in a unified and fashion.

Used in a dispersed and illogical way, they can cause more harm than good. Used in an

inconsistent way, they can only add to the huge amount of interruptions that and individual

worker faces during his/her workday. So the question remains, do the advantages overweight the

challenges these new ways of communication pose on the user and how do individuals deal with

the challenges they face?

Statement of the problem

1. What are the challenges arise in applying technology in Small-scale businesses?

2. What are the managerial influences of technology in Small-scale businesses?

3. What are the recommendations of the following people about to the technological influences

in Small-scale businesses;

A. IT Manager

B. Marketing Professor

C. Business Professor

Scope and delimitations

This study was focused in the technological influence of having effect in the small scale

businesses It also aims to study if the production and services improves or not. Also, To know

deeper about challenges of using technology in small businesses. Lastly, To gain information

about the technological effect in the workplace and communication of the business. The

respondents are in ages of 18 and above. The type of research method that researcher used in this

study is content analysis, provided by an interview. The respondents of the study are the 20

entrepreneurs with small scale businesses, from the area namely: Caloocan, Malabon and

Valenzuela.

The respondents were chosen through purposive sampling. The researcher was guided by a set of

interview question based on the research title and based on the previous studies. The

questionnaire was used to gather data needed for this research study.

Significance of the study

Small - scale business- It is hoped that the outcome of this research will add up knowledge and

be aware about the effect of ICT on small and medium-sized enterprises as well as barriers and

challenges encountered through their transition to adapting technology. It also gives an

opportunity for businesses to improve their efficiency and effectiveness, and even to gain

competitive advantage.

Small - scale business employees. This research study will help the employees to realize the

importance, how to utilize the technology and to raise awareness about the influence of it int

their workplace.

Community. This study will help the community to gain appropriate knowledge on how the

technology became significant when establishing business and to achieve customer's knowledge

Students. This study will help the students to gain information, ideas and understand the

technological influence for them to be aware to the effect of it and apply it on their own.

Researchers. This research study will help fellow researchers to explore new information that is

enough to enhance our knowledge on how the technology influenced and make small - scale

business to grow.

Future Researchers. This investigation will help the future researchers by guiding them, give

knowldege, make them aware and to continue to study further about this topic.

Related Studies

Dabbagh (2015) found that Internet usage allows for instant access to information,

however, at the same time it causes the need for re-work, wading through extraneous material

and longer time for task completion. The authors found that Internet usage created inefficiency
due to employees wasting time. The use of ICTs allows employees to stay in touch with their

work colleagues, users of ICTs can be less aware of the extent of their constant checking and

frequent responding to emails. This behaviour generates additional email traffic for others to

check and respond to, which in turn creates more emails to deal with, resulting into a self-

reinforcing loop. Also found that flexibility facilitates long work hours and as a result, higher

stress. This is referred to as technostress – the stress caused by the use of technologies.

Technostress in the workplace has been shown to significantly reduce employee productivity.

According to Younes and Zoubi (2015) “It shows that the correct use of modern

technologies require a comprehensive understanding to the reality of change that happens to the

community. Thus, this requires concerted efforts through full cooperation among all sectors of

society, from family to government institutions, along with the presence of useful awareness

programs supervised by these institutions and pursued by the family to utilize the modern

technologies accurately in order to ensure and protect the future generations. Nowadays, people

socialize with each other using online-environments such as Facebook, MSN and phones instead

of face to face interaction on these types of communications. The nature of the human is not

programmed for this type of communication yet. People must live and work together to socialize

with each other. In conclusion, it is obvious that modern technologies can be a double-edged

weapon. They have their advantages, but with many inventions, they can completely change our

lives, for better or worse. As a result, we must work for the interest of social connection to

preserve people's feelings towards each other away from the addiction to technology.

Yusuf (2013) emphasizes that “ICT or Information Communication Technology helps the

small and large businesses to grow in all aspects. It was found that even if very small, a firm has

the opportunity to attain competitiveness and outmaneuver its rivals if it constructs a culture that
fully utilizes the opportunities that come with ICTs be it the internet, electronic commerce, e-

business and communication technologies, knowledge-based innovation management.

Furthermore, it was found that ICT can simply help firms to quickly locate more customers,

outsource best suppliers, and most importantly reach suitable business partners worldwide.

Enthusiastic respondents expressed that they have found ICTs as very effective in terms of

decreasing the time between the outlay of capital and the receipt of products and services. In

addition, financial benefits include the creation of highly specialized businesses and the initiation

of completely new unique business processes and reengineering projects. ICT adoption is highly

strategic in that it is firstly potential for the immediate survival and growth of any business

whether small or large and secondly it is inescapable necessity for the future success of any

business. Some of the strategic benefits respondents indicated include expanding geographical

reach as well as increasing brand awareness, increasing revenue, improving customer services

and interaction as well as competing with bigger rivals.”

Perkannen (2012) suggest that “communication technologies’ effect on individual

worker’s productivity is limited in many ways. In the worst case, employee may not even be

aware of a communication tool that is available in the organization and that could improve

her/his productivity. In the target company, communication tends often to be inefficient as

relevant information is not available when needed. To increase productivity, the employer should

have up-to-date internal communication guidelines and organize trainings and other support for

employees, particularly when new communication tools are taken into use. Sharing and archiving

relevant information and documents so that they are available for co-employees should be a

common practice. Also, the management should act as a role model and encourage employees to
adopt new communication tools and follow communication guidelines, if those exist in the

organization.

Related Literature

(Cloudwell,2018) explains that digital technology has the biggest impact for SMB to

have a solution to the problems. Triggered by the recession, generational changes, and

globalization, a tectonic shift is changing the face of small business. But, just like larger entities,

SMBs need to use technology-based solutions to help improve business productivity, increase

revenues and profitability, and drive innovation. Today’s SMBs need to recognize that

technology is a strategic component of their business that can facilitate their own business

operations and bring value to their customers. By using this digital technology we don’t have to

consider the cost of air travel and accommodation for teachers.

According to (Ramey,2018) Using technology is a high maintenance cost. It is expensive

to buy technology, but it is also costly to maintain it. Many small businesses can not afford the

cost of hiring a full-time technical person, so they resort to monthly tech contractors who charge

them for work done. If business technology tools like computers are not well maintained, their

performance will decrease and the process of buying new computers or any other business

technology can even be more expensive.

(Brookins, 2010) suggested that technology helps SMB to train employees and to have

flexible environment. “ As small businesses implement new technologies into their processes,

they are tasked with providing training to new and veteran employees. While new employees are

likely to easily adapt to the technologies, veteran employees may resist the new technologies or

experience a learning curve, which may temporarily reduce productivity. Technology gives
small business owners and their employees the option to work in the office, from home, on the

road and even from across the country. Affording small business owners the opportunity to hire

talent from all over the world, technology can help businesses gain a competitive edge in the

global environment”

Synthesis According

to Younes and Zoubi “It shows that the correct use of modern technologies require a

comprehensive understanding to the reality of change that happens to the community. Thus, this

requires concerted efforts through full cooperation among all sectors of society, from family to

government institutions, along with the presence of useful awareness programs supervised by

these institutions and pursued by the family to utilize the modern technologies accurately in

order to ensure and protect the future generations. Nowadays, people socialize with each other

using online-environments such as Facebook, MSN and phones instead of face to face interaction

on these types of communications. The nature of the human is not programmed for this type of

communication yet. People must live and work together to socialize with each other. In

conclusion, it is obvious that modern technologies can be a weapon. . As a result, we must work

for the interest of social connection to preserve people's feelings towards each other away from

the addiction to technology. Likewise, Yusuf emphasizes that “ICT or Information

Communication Technology helps the small and large businesses to grow in all aspects. It was

found that even if very small, a firm has the opportunity to attain competitiveness and

outmaneuver its rivals if it constructs a culture that fully utilizes the opportunities that come with

ICTs be it the internet, electronic commerce, e-business and communication technologies,

knowledge-based innovation management. Furthermore, it was found that ICT can simply help

firms to quickly locate more customers, outsource best suppliers, and most importantly reach
suitable business partners worldwide. Enthusiastic respondents expressed that they have found

ICTs as very effective in terms of decreasing the time between the outlay of capital and the

receipt of products and services. In addition, financial benefits include the creation of highly

specialized businesses and the initiation of completely new unique business processes and

reengineering projects. ICT adoption is highly strategic in that it is firstly potential for the

immediate survival and growth of any business whether small or large and secondly it is

inescapable necessity for the future success of any business. Some of the strategic benefits

respondents indicated include expanding geographical reach as well as increasing brand

awareness, increasing revenue, improving customer services and interaction as well as

competing with bigger rivals.” They both agree that we need technology for every businesses to

grow. It is a necessity for every business to run and to work for it but they both agree that we

need to understand and comprehensively know how to use this technologies. They both

emphasizes that the social media platform helps us to communicate fact and convenient

Perkannen suggest that “communication technologies’ effect on individual worker’s

productivity is limited in many ways. In the worst case, employee may not even be aware of a

communication tool that is available in the organization and that could improve her/his

productivity. In the target company, communication tends often to be inefficient as relevant

information is not available when needed. To increase productivity, the employer should have

up-to-date internal communication guidelines and organize trainings and other support for

employees, particularly when new communication tools are taken into use. Sharing and archiving

relevant information and documents so that they are available for co-employees should be a

common practice. Also, the management should act as a role model and encourage employees to

adopt new communication tools and follow communication guidelines, if those exist in the
organization. On the other hand, , (Brookins) suggested that technology helps SMB to train

employees and to have flexible environment. “As small businesses implement new technologies

into their processes, they are tasked with providing training to new and veteran employees.

While new employees are likely to easily adapt to the technologies, veteran employees may

resist the new technologies or experience a learning curve, which may temporarily reduce

productivity. Technology gives small business owners and their employees the option to work in

the office, from home, on the road and even from across the country. Affording small business

owners the opportunity to hire talent from all over the world, technology can help businesses

gain a competitive edge in the global environment”. They have the same idea about it that

technologies influences the small scale businesses to their productivty, Also they both believe

that it can help to have flexible and comfortable environment that the employees can be train and

communicate easiliy with communicational technologies such as phone and etc.

According to Yusuf, that “ICT or Information Communication Technology helps the small and

large businesses to grow in all aspects. It was found that even if very small, a firm has the

opportunity to attain competitiveness and outmaneuver its rivals if it constructs a culture that

fully utilizes the opportunities that come with ICTs be it the internet, electronic commerce, e-

business and communication technologies, knowledge-based innovation management.

Furthermore, it was found that ICT can simply help firms to quickly locate more customers,

outsource best suppliers, and most importantly reach suitable business partners worldwide.

Enthusiastic respondents expressed that they have found ICTs as very effective in terms of

decreasing the time between the outlay of capital and the receipt of products and services. In

addition, financial benefits include the creation of highly specialized businesses and the initiation

of completely new unique business processes and reengineering projects. ICT adoption is highly
strategic in that it is firstly potential for the immediate survival and growth of any business

whether small or large and secondly it is inescapable necessity for the future success of any

business. Some of the strategic benefits respondents indicated include expanding geographical

reach as well as increasing brand awareness, increasing revenue, improving customer services

and interaction as well as competing with bigger rivals.” They both agree that we need

technology for every businesses to grow. It is a necessity for every business to run and to work

for it but they both agree that we need to understand and comprehensively know how to use this

technologies.In addition,(Cloudwell) explains that digital technology has the biggest impact for

SMB to have a solution to the problems. Triggered by the recession, generational changes, and

globalization, a tectonic shift is changing the face of small business. But, just like larger entities,

SMBs need to use technology-based solutions to help improve business productivity, increase

revenues and profitability, and drive innovation. Today’s SMBs need to recognize that

technology is a strategic component of their business that can facilitate their own business

operations and bring value to their customers. By using this digital technology we don’t have to

consider the cost of air travel and accommodation for teachers. They both explain the positive

side of ICT in small businesses the believe technology will help every business to innovate but

need to learn for it effectively use.

According to Dabbagh that Internet usage allows for instant access to information,

however, at the same time it causes the need for re-work, wading through extraneous material

and longer time for task completion. The authors found that Internet usage created inefficiency

due to employees wasting time. the use of ICTs allows employees to stay in touch with their

work colleagues, users of ICTs can be less aware of the extent of their constant checking and

frequent responding to emails. Also found that flexibility facilitates long work hours and as a
result, higher stress. This is referred to as technostress – the stress caused by the use of

technologies. Technostress in the workplace has been shown to significantly reduce employee

productivity. On the other hand, (Ramey)Using technology is a high maintenance cost. It is

expensive to buy technology, but it is also costly to maintain it. Many small businesses can’t

afford the cost of hiring a full-time technical person, so they resort to monthly tech contractors

who charge them for work done. If business technology tools like computers are not well

maintained, their performance will decrease and the process of buying new computers or any

other business technology can even be more expensive. They both believe that technology causes

negative things in small businesses such as high maintenance cost and lots of stresses for every

worker in every businesses. They agree that this

Definition of terms

Communication Tool-tools that can be used for communication include landline

telephones, cell phones, smartphones, iPads and fax machines. The lines between the devices are

blurring.

Digital Technology-Devices that process and use digital information include personal

computers, calculators, automobiles, traffic light controllers, compact disc players, cellular

telephones, communications satellites, and high-definition television sets.

ICT or Information Communication Technology - refers to technologies that provide

access information through telecommunications and helps to interact or negotiate to the owners

of the small scale businesses.

Managerial Influence-is a set of management disciplines that allows organizations to

manage their technological fundamentals to create competitive advantage.

 Productivity - A measure of the efficiency of technology in small scale businesses in

converting inputs into useful outputs

Small Scale Business - is an independently owned and operated company that is limited

in size .

Technology-the application of scientific knowledge for practical purposes, especially in

industry

III. Research design and methodology

This chapter presents the research design, population and sample of the study, the research

instrument, validation of the research instrument, data gathering procedure.

Research design

This study will use the content analysis design and will be using interview in gathering the

data and supplemented by documents. This method will be utilized to assess the adversity of

small scale businesses in analyzing the influence of technology.

This research design examine choice and use of words from which concepts on images are

vividly derived.It will lash at the relationship between words and their meanings, stressing the

system of relation between words as a source of meaning.

Population and Purposive data sampling

The respondents of the study were fifteen small scale business owners who uses technology

for there business. The ages were eighteen and up.

 The researchers will utilize purposive sampling . A purposive sample is a non-probability

selected based on characterisics of the population and objective of the study.

Research Instrument

The researcher will use an interview to gather data needed in the research study. After the

validation process, the reseach instrument will be distributed to the respondents in the random

selection. The instrument was composed of interview questions.

The main instrument that will be used in the study is an interview quetion to gather the

needed data. The draft of the questionnaire was drown out based on the research readings, related

studies and literature. In the preparation of the reseach instruments the requirements in the

designing if good data collection instrument was considered .

In validation process of this study, copies of interview questions will give to the pool of

expert consisting of one graduate professor and reseach instructor who went through reseach

questions. The instrument will carefully ascertain the appropriateness and adequacy of the

instrument. Their comments and suggestion will be cosider to improve the intrument we used.

Data gathering procedure

To gather the data needed in the study, the researcher sought first permission from the school

principal office of Tinajeros National High School.

After having sought the necessary information, the communication letter together with the

interview questions were letter presented to the respondents before answering the research

instrument, the respondents will be informed about the purpose of the study and researchers role

as an interpretation of the information. The participants will be not be obliged to answer the
question should they decide to inhibit themselves in participating in the interview. The researcher

will personally go to the workplace and conduct interview to ensure full confidentiality of the

data. Retrieval of the interview questions was done immediately before the interview after the

retrieval of the interview questions, data collected were analyzed and interpreted by content

analysis method

Data Analysis

The researchers began the data analysis by familiarizing the data. The data collected will be

interpret and summarize by doing content analysis. This will be proven by the interview

questions and some reviewed documents. The next step was to find some similar topics the

organize into categories. The reseacrhes then coded the data collected. each of themes will be

discussed in chapter 4 to the similarity and dissimilarity to reported literature and studies.

Discrepancies from literature and studies described along with any emergent themes not found to

literature and studies. The analysis of data presents results, conclusions and meaning developed

from analysis (Rossman and Rallis, 2003)

IV. Results and Discussions

Small Business are really important in our economic development in this time in our

country. Our Government have put a lot of efforts and budgets to rise the creation of new small

businesses. Likewise, Technology changes the way we live such as in communication, gathering

information, or maybe in all transactions that we made. Some business owners uses technology

to their business to help them to their work. What are the influence of technology in small

business? Is it helpful or not in running a business?

Research Questions
1.1. What are the problems that they encounter in applying the technologies in their small scale

business

1.2.Why does the technological problems occur in using it in their business

1.3. How do these problems affect the operation of their business.

2.1.What are the management impacts of technology in handling their business

2.2. How does the application of technology affects the Productivity of their business

2.3. How does the application of technology affects the Profitability of their business

Small scale business owners deals with the challenges when it comes in using of technology in

their business. They establish brand and strive to adust against the competition that the other

businesses give. Business owner uses technology for their growth. That's why it is important to

lean the influences of it and make us realize the effects of it in the day to day transactions.

1.1 Problems encounter in applying technology in small businesses

A. Maintenance

Maintenance is the work of keeping something in proper condition, care or upkeep including:

taking steps to avoid something breaking down (preventative maintenance) and bringing

something back to working order (corrective maintenance). Maintenance of the technology is

very expensive or costly that’s why it causes the loss of money in the business. Ramey suggest

that using of technology is a high maintenance cost. It is expensive to buy technology, but it is

also costly to maintain it. Many small businesses can not afford the cost of hiring a full-time

technical person, so they resort to monthly tech contractors who charge them for work done. If
business technology tools like computers are not well maintained, their performance will

decrease and the process of buying new computers or any other business technology can even be

more expensive.

B. Low Standard Technology

One of the problems that the small scale business faces is the low standard technology that will

result to technological malfunction. This problem causes them to pay for repairing or replacing

it. Low standard technology refers to the technology that is easily worn-out or damage because

of the materials used in it.

C. Technological Advancements

Technological advancement is the generation of information or the discovery of knowledge that

advances the understanding of scientific relations or technology. Improving and Upgrading

technology is a difficult task to every business but it satisfy the need of customer. Updating the

technology is also a need for them to gather informations about what is trending today that will

help them to adapt.

D. Communication Technology Awareness

One of the problems that business encounter is the awareness about the communication

technology. Communication Technology refers to technologies that provide access to

information through telecommunications. It focuses primarily on communication technologies.

This includes the Internet, wireless networks, cell phones, and other communication mediums.

While Awareness is the concern about and well-informed interest in a particular situation or

development. Awareness in Communication technology is important. Communicational

technology Unawareness causes loss of customers. Perkannen suggest that “communication

technologies’ effect on individual worker’s productivity is limited in many ways. In the worst

case, employee may not even be aware of a communication tool that is available in the

organization and that could improve her/his productivity. In the target company, communication

tends often to be inefficient as relevant information is not available when needed.

1.2 Reasons of technological problems that occur in the small business

A. Insufficient Knowledge

One of the reasons why technologies are malfunctioning is because of insufficient knowledge in

using it. Knowledge means familiarity, awareness, or understanding of someone or something,

which is acquired through experience or education by perceiving, discovering, or learning. Lack

of Knowledge in using technology and machinery can affect and damage the technology on

small business. According to Younes and Zoubi they emphasizes that the correct use of modern

technologies requires a comprehensive understanding to the reality of change that happens to the

community. Thus, this requires concerted efforts through full cooperation among all sectors of

society, from family to government institutions, along with the presence of useful awareness

programs supervised by these institutions and pursued by the family to utilize the modern

technologies accurately in order to ensure and protect the future generations.

B. Lack of Manpower

In able to work and to process the transactions of every company they need manpower for it to

work. Manpower is the total amount of persons available and fitted to the work. One reason of

technological problem is the lack of people that can maintain and upgrade the technology.
Without the manpower, technology can't able to maintain, update and satisfy the needs of the

customers.

C. Technological Excessive Usage

It is also the reason why the technologies malfunction is overusing it. Excessive refers to more

than is necessary, normal, or desirable. While usage the action of using something or the fact of

being used. It means Excessive usage of technology refers to using of technology far from the

normal use of it. That's why many technologies overheated and damage or malfuction because

of that they can't be utilize anymore.

D. Utility Bill Rates

One factor why problems in maintenance of technological equipments in business occur is

Utility bill rates. Utility bill refers to an amount of money owed for goods supplied or services

rendered, set out in a printed, charges to electricity and water supply that is to written statement

of charges. Billing rates affect the flow of business. Higher bill rate consumption causes higher

expense for maintenance that will result to loss of money for the business.

1.3 Effects of the problem in the opreation of the business

A. Low amount of Profit

Profit is is a financial benefit that is realized when the amount of revenue gained from a business

activity exceeds the expenses, costs, and taxes needed to sustain the activity. Low income

because the technology that is use in the business encounters problem that will not be use and

slower down production that will result to lower income of small businesses.

B. Replacement Expense
One of the effects of technological problems is the replacement of the technology. Replacement

is putting something or restoring things to make it new. Malfunctioning or damage of the

technology causes it to be replace with new technology and it is a bad move for the small

business because it is an expense on their part.

C. Work Delay

Delay of works causes the business to produce less. Delay is the act of postponing, hindering and

causing something to occur more slower than normal. Technology problems often is the reason

why some products and goods are made in a vey long time. Delay of works causes a lot for the

business it gives slower transaction, loss of customers and income.

D. Interference of Operation

Interference means constant distraction to other works or prevent (a process or activity) from

continuing or being carried out properly. Technological problems causes operations in business

breakdown and slowing down the productiveness and sometimes stopping the whole operation.

This will result to loss of income for the small businesses.

E. Inefficient Time Operation

Time Operation is the time interval between the instant of the occurrence of a specified input

condition to a system and the instant completion of a specified operation. Technological

problems causes the workers to work manually and spend more time to produce lesser amount of

products

2.1 Management impacts of technology in business

A. Competitiveness
One of the management impact is becoming competitive of every business. Competitiveness

refers to the ability to provide products and services as or more effectively and efficiently than

the relevant competitors. It is an edge for the business to have technology that gives faster

processes because of more informations gather and more products are able to provide for the

needs of the customers.

B. Job efficiency

Job efficiency one of the management impact of technology. Job Efficiency in the workplace is

defined by the work or tasks completed in a single workday by a single employee, or by the work

completed by a department or team in a given time period. It is fast pace of work and production

of a business that helps them to improve and increase their products and services.

C. Communication Efficiency

Communication efficiency means that you deliver your message quickly in a way that allows the

receiver to hear it, interpret and make use of it as you intended. Digital technology is an asset

for the businesses because when they are using this they are easily getting customers throuh

advertising in social media, or maybe contacting the clients about their needs for services and

product. This gives an competitve advatage to the business to gain more customers and profit.

Like, Cloudwell explains that digital technology has the biggest impact for SMB to have a

solution to the problems. Triggered by the recession, generational changes, and globalization, a

tectonic shift is changing the face of small business. But, just like larger entities, SMBs need to

use technology-based solutions to help improve business productivity, increase revenues and

profitability, and drive innovation. Today’s SMBs need to recognize that technology is a

strategic component of their business that can facilitate their own business operations and bring
value to their customers. By using this digital technology we don’t have to consider the cost of

air travel and accommodation for teachers.

2.2 Effect of technology on productivity of the small business

A. Larger Production

Production is a process of combining various material inputs and immaterial inputs in order to

make something for consumption. It is the act of creating an output, a good or service which has

value and contributes to the utility of individuals. Because of technology and machineries of the

business the production speeds up and give larger quantity of products that will be sold for the

consumers, the services speeds up because of technology that causes satisfaction and big amount

of services completed.

C. Lesser Production

Production is a process of combining various material inputs and immaterial inputs in order to

make something for consumption. It is the act of creating an output, a good or service which has

value and contributes to the utility of individuals. Technology also causes lesser production.

When the technology is damage and cant be use anymore the business will temporarily force to

work manually. Because of that little amount of products are only produce.

2.3 Effect of technology on productivity of the small business

A. Profitable

Profit or net income, is the amount of earnings that exceed expenses for the period. In other

words, it’s the amount of income left over after all the necessary and matched expenses are

subtracted for the period. Technological advancement helps the business to gain more profit

because of the large amount of products produce and with technology it helps to speeds up the

transaction for the business to earn quickly.

B. Profit Loss

Profit is a financial benefit that is realized when the amount of revenue gained from a business

activity exceeds the expenses, costs, and taxes needed to sustain the activity. Lost profit damages

are an estimate of the total sum of money lost to a business. Technology causes expenses to the

business for maintaining and repairing the different kinds of technology. This problems give

lower amount of profit for the business.