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IDC Finds SME Dependency on the Internet as a Source of Revenue is Increasing

  • 22 April, 2004 10:08

<p>NORTH SYDNEY, April 22nd, 2004 – IDC has recently completed its study of the local SME market titled, “The Australia SME Internet User Profile, 2004”. The study focuses on how Small and Medium Enterprises (SMEs) are using the internet, and to what extent they are deploying ecommerce solutions. The report focuses on the current situation, future intentions and trends of the SME market in Australia. IDC’s key findings were that the internet was becoming more available to employees, and a more important source of revenue for small and medium sized enterprises.</p>
<p>The importance of the internet to business is increasing, not just as a source of information about products and competition and to communicate via email, but more importantly as a source of revenue. Internet access for all employees amongst businesses surveyed increased by 10 percent to 63.7% in comparison to last year. Broadband is considered to be a major factor here as it continues to penetrate into businesses while networking is also on the increase.</p>
<p>When choosing their ISP, SMEs consider service level guarantees and cost effective internet access, the top two factors in selecting their provider. “It makes sense that these are the top two responses” said IDC Market Analyst Brad Hill. “SMEs are very focused on costs, but they also need to know that if they have a problem it will be dealt within an acceptable time frame” added Mr Hill.</p>
<p>IDC found that almost a quarter of SMEs surveyed were expecting more than 20% of their revenue to come from the internet in 2004. Just under a third of businesses surveyed do not expect any revenue from the internet over the next 12 months, but this figure is down on those who generated no revenue last year.</p>
<p>The longer a business uses the internet, the more revenue they are expecting it to return. Approximately 80% of respondents with internet access have a homepage, 20% of these businesses sell products or services online, 21% take orders via mail or phone from the internet and only 8% advertise on homepage banners.</p>
<p>For press enquiries please contact:
Brad Hill, Market Analyst
Email: bhill@idc.com
Phone: (02) 9925 2228</p>

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