SMEs continue to invest in online, mobile internet soars: Report

SMEs have been successful in establishing themselves online but should now prepare for the wave of users accessing the internet through mobile phones, a new Sensis report shows.

The 2009 Sensis e-Business report also reveals that more companies are continuing to focus on emerging technologies and digital marketing techniques.

The report shows that 54% of SMEs now operate a website, the same number as last year, but 24% of SMEs currently use the internet for marketing activities (including advertising on websites and portals) with a further 8% are expected to start in 2010.

Additionally, one-third of SMEs now use e-mail marketing, with another 12% expected in 2010, while 97% of SMEs now use the internet mainly for e-mail. The number of SMEs connected to the internet rose 1% to 95%.

The importance of the website as a business tool is also on the rise, with 71% saying their website improved business effectiveness, an increase of 6% from last year. Additionally, 11% said their website increased awareness, 10% said it exposed the business to a wider market and 18% said effectiveness was increased by informing potential customers about the business.

Small businesses now use the internet for more than just operating a website, with 56% now taking orders online, up 2% from last year. Additionally, 67% take payments online, up by 4%, with 67% of businesses using e-Commerce having recovered their initial investment.

Internet connections are now being used by 74% of SMEs to pay for goods and services, up by 3% from last year’s report, while SMEs in the communications, property and business services sector are the most likely to use the internet to place orders for goods.

Airline tickets are the most popular item bought online, up by 11%, with software coming in at 47%.

The rise of the smartphone is also an emerging trend in SME workplaces, with 62% of SMEs now owning a 3G-capable mobile phone with internet access, up 10% from 2008. More than 36% of SMEs now use GPS navigation technology.

The number of SMEs using a mobile e-mail device, such as a BlackBerry or iPhone, has also increased by 5% to 17%.

Report author Christena Singh says it is becoming accepted that SMEs will have an online presence with a high-speed connection, and the next step is ensuring they keep up with growing technologies such as mobile broadband.

“I think the most interesting figure out of all of this is the fact that people are now accessing internet more through their mobile phones, and that number has increased significantly over the past year. And what they are looking for are commercially-related things, looking for services and then goods and services, rather than social networking. It’s a huge trend to be on top of.”

“If you look at the trend overall, people have a wireless broadband presence, and they are looking for products. This is going to be the next stage of online, being able to be found on portable mediums.”

Singh says businesses must have more than just a website – they must ensure they are using sophisticated techniques to ensure they are able to be found by users on mobile broadband services.

“This isn’t just about computers, this is all about being there when people are looking for you. Businesses need to think about what this means, about what having mobile connections means for how you run your business.”

The number of businesses concerned that e-Commerce would result in lack of personal contact has remained unchanged at 22%, while concerns about lack of expertise in computers has fallen 5% to 21%. Additionally, businesses concerned about cost and time for introducing new technology has fallen 6% to 19%.