SMEs and Their E-Commerce

Abstract

One of the greatest challenges facing traditional small and medium-sized enterprises (SMEs) throughout the world is that posed by the Internet. While the Internet offers great potential to SMEs, from improving and cheapening production processes through to reaching global customers, it also poses great problems. SMEs' resources, human and financial, are usually very limited. This article examines the use of e-commerce, particularly via Websites, among SMEs in Wellington, New Zealand on the basis of a 2003 survey of 106 firms. Almost all the SMEs surveyed used computer technology and about 67% had their own Website. Moreover, 83.1% had launched their Website within the last five years, reflecting the influence of the recent and rapid growth of information and communication technology in New Zealand and around the world. Enhancement of corporate image, reaching new markets, product checking by customers and better communications with customer and suppliers were among the main objectives of the SMEs in setting up their Websites. The survey findings also indicate a strong relationship between the use of a Website and a widening customer base and improvements in turnover. While the presence of a Website is of the utmost important to an SME's development, problems such as the lack of internal resources, technical expertise and maintenance skills are common. The study concludes that appropriately skilled workers (designers, IT specialists, etc), technical training programmes and the availability of advisory services relating to e-commerce and Website operation are of great importance to SMEs.