Broadband Embraced by Australia’s Small Businesses

July 26, 2006 - According to the latest Sensis e-Business Report, new wireless technology is being embraced by Australia’s small businesses. Report author Ms Christena Singh said there were significant numbers of small and medium enterprises (SMEs) taking up new wireless technologies.

“About 12 per cent of SMEs now have some form of satellite navigation device, either in-car or hand-held. And seven per cent have a mobile e-mail device,” stated Christena Singh. “We also know that one in every two SMEs now has a notebook computer….It appears SMEs are keen to adopt technology that allows them to work on the run, in transit and away from the office. We see these newer types of technology having a real advantage for small businesses, allowing them to compete more effectively with bigger businesses”.

Other findings from the 2006 Sensis® e-Business Report:

- Nine of every 10 SMEs are connected to the internet. Of the remaining ten per cent, six per cent have not connected to the internet, while four per cent do not own a computer.
- Eight of every 10 SMEs (80 per cent) connected to the internet now use broadband, increasing 17 percentage points during the year.
- Email remains the most popular reason why SMEs use the internet. However, the big growth areas are directories usage and product ordering, both increasing eight percentage points during the year.

Overall, more than seven of every 10 SMEs access directories on line and six of every 10 place orders online.

- Almost half (49 per cent) of all SMEs have a LAN network supporting their business, while more than a quarter (26 per cent) have an advanced telephony system.
- SMEs spent an average of $5,800 on hardware during 2005, slightly below the $6,200 in 2004. The average spend on software was $3,400, up $100 for the year.
- With technology prices falling, small businesses expect to again spend less on computers this year.

- Average expenditure on computers in 2006 is expected to be $7,300, a fall of $1,300 from 2005. Software purchases are predicted to be at the same level as last year.
- Accounting, general office and internet/e-mail packages top the list of software purchases. Security software has had the biggest jump in take-up, rising from negligible levels last year to eight per cent this year. It is now the fourth most popular software purchase by SMEs.
- Six of every 10 SMEs, or 60 per cent, now place orders for products and services over the internet, up from 53 per cent in 2005. The number of SMEs using the internet to pay for products and services online is encouraging, up four percentage points to 66 per cent.
- In line with increases in purchases, there has been considerable growth in the number of SMEs using e-commerce to sell goods and services. The proportion of SMEs taking orders online increased by six percentage points during the year to 47 per cent.
- Concerns about hacking continue to be a significant barrier to SMEs engaging in e-commerce. Nearly half of SMEs (49 per cent) believe hacking is a major concern, up nine percentage points from last year and at the highest level of any concern recorded during the last six years.
- Concerns about hacking have led to an increase in the number of security software purchased by SMEs during the year.