In developing countries information and communication technology (ICT) can be used as a tool for
driving socio-economic development such as poverty reduction. Small and medium enterprises
(SMEs) are an engine for growth and they play an important role in poverty reduction by providing
employment and driving economic development.  
In this research we followed an integrated approach whereby existing theories and government
policy documents were analysed.  Furthermore, the empirical data of other studies were used for
comparison purposes. This research presents a theoretical analysis on how ICTs can be used to
alleviate poverty by SMEs in South Africa. It describes the contribution of SMEs and the impact of
ICTs on economic development and alleviation of poverty. ICT usage and a discussion of the various
barriers faced by South African SMEs when adopting ICT are covered. The Word Bank strategy for
attacking poverty is explored from a South African perspective.  
A theoretical framework has been constructed using the building blocks proposed by the theory of
Schwarz et al. (2010), as well as the insights discovered from the current literature and empirical
data. The framework provides a better understanding of how poverty can be attacked through the
interaction of various stakeholders involved in the process, as well as the use of ICT in the SME
environment.  
The results of this study will benefit the government and non-government agencies that focus on the
development of the SME sector, guiding them on how best to implement ICT initiatives to achieve
poverty alleviation and accelerate usage. This will contribute to informing and enabling policy
formulation, regulatory practice and business operations to produce positive growth and
development outcomes.