OTTAWA - The initial flurry to build an Internet presence has died down, and web design firms will have to work harder get business from more resistant businesses, says a new study titled Net Impact Study Canada The SME Experience. While an uncertain return on investment was listed as the main concern for not having a website, those that did have one saw an increase in revenues and a drop in operating costs.

Among the key findings:

• 50.2 per cent of Canadian small businesses are using e-commerce
• 20.3 per cent are planning to implement an Internet strategy within the next three years
• 28.4 per cent have no future plans to adopt an e-commerce strategy

The SME Experience also highlighted that small businesses had the most to gain from adopting an Internet Business Solution (IBS). According to Statistics Canada the small business sector accounts for 60 per cent of economic output, 80 per cent of employment, and creates 85 per cent of new jobs. In terms of cost cutting and revenue boosting the study found:

• Companies averaged seven per cent in revenue increases
• 9.5 per cent of costs for goods sold were decreased
• the cost of sales and administration costs were cut by 7.5 per cent
• businesses using e-commerce report high satisfaction rates

The most common areas of adoption were in the customer service and support areas, with 56.9 per cent of business surveyed using these methods. Customer development and marketing were also popular uses. Meanwhile, human resources and supply chain management tasks were among the least popular reasons for adoption.

The study is being published in two parts, with the remainder to come in early 2003. For a full version of The SME Experience visit http://www.cebi.ca.

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