The preliminary results of a survey on Internet usage by the small, micro and medium enterprise (SMME) sector in Cape Town, Durban and Gauteng show that Durbanites are the most well versed in Internet usage. The survey was conducted by the SA Internet Economic Study and sponsored by UUNet and USAID.
Despite the fact that Gauteng is often seen as the leader in terms of technological know-how, the results show Durbanites are the most avid users of the Internet.
Only 44.3% of Durban respondents spent less than 30 minutes connected to the Internet when they first began using it, while 53.9% of respondents in Gauteng and 54.4% in Cape Town spent less than 30 minutes connected to the Internet.
At the other end of the scale, 12.3% of Durbanites spent more than 120 minutes connected to the Internet compared with only 5.3% in Cape Town and 4.5% in Gauteng.
Another finding is that almost three quarters (71.2%) of Durban SMMEs have their own Web sites compared with 64.4% in Gauteng and only 54.4% in Cape Town. Durban SMME dependency on the Internet for revenue generation is also far higher than in the other two centres.
Only 46.6% of Durban SMMEs rely on the Internet for less than 10% of their revenue compared with 66% in Cape Town and 53.9% in Gauteng, while some 34.7% of Durban SMMEs rely on the Internet for more than 30% of their revenue compared with 15.8% in Cape Town and 15.7% in Gauteng.
Although training in Internet usage is generally poor, with only one out of every ten people having had any training, Durban (15.2%) easily beats Gauteng (9.1%) and Cape Town (8.4%).
"The preliminary results show that there is a desperate need for training so that small businesses can make the best use of the Internet. A large 62% of small businesses have their own Web site, yet the update frequency for 81.9% of these sites is monthly or even less frequently," says study leader, Helmo Preuss.
"Some 15.9% have never updated their Web sites, while 14.7% only update once a year. The problem seems to be that as many of the companies have fewer than five employees, it is impossible for the owner to take time off to attend courses. In addition, many respondents do not appreciate the benefits of upgrading their Web site more frequently."
The main usage of the Internet for business purposes is for e-mail (24.4%) and online banking (20%). E-commerce applications are not very well developed, with 71.6% of respondents saying they do not use the Internet for commercial transactions.
There is a good presence of specialised marketplaces on both the buying and selling side. Some 36.6% of respondents have used such a hub for purchases and an almost equally large 27.1% have sold via a hub.
Once complete, the study aims to have surveyed at least 1 800 urban SMMEs and 200 rural SMMEs, to determine how the Internet has enabled them to compete effectively.
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