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SMEs in South Africa 131 • Problems experienced by those using the Internet Question 22 attempted to identify the problems experienced by those who claimed to be using the Internet for e-commerce: Table 5: Problems Experienced by Those Using the Internet Ranking Q 22: Problems experienced by those who used the Internet 1 Insufficient cheap bandwidth 2 Not enough companies use it 3 Technical barriers 4 Expensive hardware 5 Lack of e-commerce information 6 Immature e-commerce technologies 7 Lack of online guarantees 8 Lack of knowledgeable/qualified staff 9 Lack of import/export information 10 Legal issues • Benefits experienced by those using the Internet Question 23 asked for the top ten benefits experienced as a result of Internet usage. Table 6: Benefits of Internet Usage Ranking Q 23: Benefits of Internet usage 1 Financial reasons; such as online banking 2 Speed of communication/response rates 3 Reduction of communication costs 4 Research/gathering of information 5 Improve productivity/competitiveness 6 Global reach 7 Improve CRM 8 Transfer documents 9 Saves time 10 Marketing/advertising Copyright © 2003, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited.
132 Cloete CONCLUSION The findings of this survey indicate that many issues from overseas research are both pertinent and valid for the South African environment. Information on the benefits of e-commerce utilization and the barriers to its adoption from this survey and the survey from Courtney and Fintz (2001) show some correlation to one another, as well as to the results obtained by overseas surveys. The Internet has been shown to be a disruptive technology that has influenced the business environment. Although respondents indicated that greater usage of the Internet would improve their businesses’ competitiveness, costs of implementing and running e-commerce business are perceived to be strong barriers to greater adoption by South African SMEs. In summary, it can be said that the following objectives were achieved by this research: • A good indication of the level of e-commerce adoption by SMEs in South Africa has been perceived. • The barriers to the adoption, implementation and utilization of e-commerce by South African SMEs have been highlighted. • The benefits of e-commerce adoption by South African SMEs have been pointed out. The role of the government in the greater adoption of electronic commerce cannot be understated. The introduction of a competitor to Telkom is a very important factor if greater competition can reduce communication costs. If the new bill for e-commerce is to further introduce barriers to Internet usage, the South African government will need to reassess their policy towards e-commerce for South Africa to be competitive in the global market. REFERENCES Akkeren, J. & Cavaye, A. (1999). Factors Affecting the Adoption of Ecommerce Technologies by Small Business in Australia – An Empirical Study. Retrieved October 1999 from the World Wide Web: www.acs.org.au/ act/events/io1999/akkern.html. Chan, C. & Swatman, P. (2001). Management and Business Issues for B2B e- Commerce Implementation. Deakin University, Australia. Retrieved May 12, 2001 from the World Wide Web: http://mis.deakin.edu.au/research/ working_papers_2001/2001_09_chanc.pdf. Cloete, E. (2001) E-commerce: A Contemporary View. Pardus Publishing. Copyright © 2003, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited.
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The Economic and Social Impacts of
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