A survey of local small and medium enterprises (SMEs) has found they believe faster Internet connections boost their business.
The 2004 SME Survey, conducted by research firm World Wide Worx, indicates that companies experience better business performance when using a faster Internet connection.
"Internet connectivity has made a difference in this year`s survey; 64% of respondents using ADSL to connect to the Internet regard their businesses as highly competitive, versus 54% of those with a dial-up connection," says Arthur Goldstuck, MD of World Wide Worx.
World Wide Worx conducted the research project with support from Hewlett-Packard and Standard Bank. It interviewed 2 919 SME decision-makers around the country.
Goldstuck said he was surprised to note that companies with no Internet connection did not regard themselves as disadvantaged. "They had the same confidence level as ADSL users, with 62% of respondents with no Internet connection regarding themselves as extremely competitive. Having a connection isn`t the differentiator, clearly, but once you`re connected, the form of that connection can make a big difference.
"Only 10% of people interviewed have access to the Internet. Once SMEs are connected, the speed and availability of the connection becomes important to them. It`s like discovering a new technology and being frustrated at how little it delivers in terms of performance. SMEs that have expensive forms of high-speed connections like leased-lines also regard themselves as not getting maximum benefit," adds Goldstuck.
"There is an ideal level of performance coupled with an appropriate price level that gives SMEs the sense that the Internet helps to make them more competitive."
SMEs mainly use the Internet for e-mail and banking, says Goldstuck. "I do believe that once voice over IP becomes legalised in February next year, we will see a strong take-up of voice services via the Internet.
"Dial-up connection is also a big differentiator between the different sectors as far as SMEs are concerned; 54% of the construction sector use dial-up connection, 36% in engineering, 15% in financial services and only 6% of IT companies."
Goldstuck believes that most South African SMEs are lagging behind world trends in terms of the ICT systems they have in place. "It`s largely as a result of budgeting priorities."
The SME survey is an annual research project focusing on the factors influencing this sector in SA. This year`s project focused on the role of government, information technology and financial services in SMEs.
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