NEOnet s SME Technology Promotion & Awareness Adoption Report

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1 NEOnet s SME Technology Promotion & Awareness Adoption Report Education Awareness Application

2 Methodology and Logistics Overview This document presents the results from a survey conducted on ICT adoption in small to medium sized businesses in rtheastern Ontario from July September Study Sample For the purpose of this survey, over 100 rtheastern Ontario businesses within NEOnet s catchment area were contacted at random. Responses came from: - Timmins - Hearst - Cobalt - Matheson - New Liskaerd Survey Method The survey was a questionnaire format with 11 multiple-choice questions. The majority of surveys were conducted in person, in which respondents were permitted to ask for further explanation if required. Remaining surveys were completed through . Confidence The margin of error is dependent on respondents motivation, accuracy, and ability to answer all questions. An effort was made to contact office manager, or supervisor. Analysis Where possible, statistical results from rtheastern Ontario are compared with national figures in order to provide context and a foundation for discussing potential implications. NEOnet s SME Technology Promotion & Awareness Adoption Report 1

3 Survey Summary Q1. What category does your business fall into? From the respondents, 50% were categorized into retail, 42% into services and 8% in the professional realm. 8% 50% 42% Service Retail Professional Q2. How many employees do you currently employ? Two-thirds of businesses surveyed had 1-10 employees. 0% 12% 4% 8% 76% 1 to to to to NEOnet s SME Technology Promotion & Awareness Adoption Report 2

4 Q3. Is technology part of your business plan? The survey found that just over half of rtheastern Ontario businesses do include technology as part of their business plan. The remaining 45% did not include technology as part of their business plan and 3% have no business plan at all. From this, it remains clear that not enough SME business owners in rtheastern Ontario are adapting technology into their business plans resulting in low technology adoption within their business. 3% 45% 52% Business Plan Q4. Does your business have access to high-speed Internet? The survey found 70% of rtheastern Ontario businesses have access and utilize high-speed Internet. An alarming, 26% do not have access or do not utilize High-Speed Internet for their business, and 4% did not know. In 2007, Statistics Canada found that 87% of private sector organizations use the Internet. When comparing 70% usage rate in rtheastern Ontario to an 87% 2007 National average shows that rtheastern Ontario is significantly behind in the private sectors adoption of High-Speed Internet. 4% 26% 70% Do t Know NEOnet s SME Technology Promotion & Awareness Adoption Report 3

5 Q5. What does your business use the Internet for? Respondents stated communicating with suppliers was the top use of Internet. Falling close behind is marketing, public awareness and other, some of which include; online banking and money transfers. Some businesses are still relying on dial-up Internet for debit transactions. Social Networking applications have the ability to reach out to over 500 million potential customers in new markets and with only 4% of rtheastern Ontario businesses using Social Networking; we are not taking advantage of the opportunity to reach millions of potential clients in different regions. 4% Social Networking 18% 20% Contact Suppliers Market Goods 12% 10% 18% 18% Create Public Awareness Customer Feedback Online Orders Other Q6. Does your business have a website? Just over half of the businesses surveyed throughout rtheastern Ontario have a website for their business. The remaining 48% sited not having a website, due to limited resources, financial costs, and some expressed concerns with time commitment. Having a website allows your business to be open 24hrs a day. t having a website means your competitors are open when you are not while they are generating new customers. 52% 48% NEOnet s SME Technology Promotion & Awareness Adoption Report 4

6 Q7. Have you or other employees had computer training in the past three years? The survey shows that 58% of rtheastern Ontario employees have not had computer training in the past three years, with only 23% having had some computer training and 19% were unsure. Training for employees can be simple workshops on how to use a new program, or larger seminars to learn how to grow a business in the online world. 19% 23% 58% Do t Know Q8. Would you be interested in attending workshops/seminars on the benefits of technology in businesses? Almost half of the respondents, 48%, stated they would be interested in attending workshops/seminars to benefit their business. NEOnet will be providing seminars and workshops to help SMEs better utilize the Internet. 39% 48% 13% Do t Know NEOnet s SME Technology Promotion & Awareness Adoption Report 5

7 Q9. What is the current operating system being used in your business today? The vast majority of businesses who participated in the survey are using very out dated operating systems. Of the respondents, only 15% were using the most current windows operating system where 30% are using an operating system released in Surprisingly, 37% are still using Windows XP released in 2001 and 12% are still using Windows 98, released in Although software upgrades may be time consuming and costly, not having the most up to date software makes doing daily work within your business more difficult. 3% 3% 12% 15% Windows 7 Windows Vista Windows XP 37% 30% DOS MAC OS X Windows 98 Q10. Do you feel your operating system is out of date? When making comparisons with Q9, the idea of 77% of respondents feeling there operating system was out of date remains in line. 23% 77% NEOnet s SME Technology Promotion & Awareness Adoption Report 6

8 Q11. What types of applications do you use on a regular basis? 25% of respondents use Microsoft Office as an application on a regular basis. Other computer applications include: Simply accounting (16%), Online Banking (14%), Quickbooks Pro (12%), Online Ordering (12%), Pay Pal (9%), and Money Transfers (7%). Microsoft OfYice 9% 5% 25% Simply Accounting QuickBooks Pro 12% Online Banking 7% 14% 12% 16% E- Mail Money Transfers Online Ordering Pay Pal Other NEOnet s SME Technology Promotion & Awareness Adoption Report 7

9 Survey Analysis NEOnet s 2010 Regional ICT Small Business Survey demonstrates the extreme need for technology adoption within rtheastern Ontario. In 2007, Statistics Canada found 87% of private sector organizations were using High-Speed Internet. With only 70% of rtheastern Ontario businesses utilizing the Internet, it becomes difficult to grow a small business in the online world. In some rural and remote areas, High-Speed Internet is not as readily available which can attest for a portion of the difference between rtheastern Ontario and the 2007 National average. Social networking is a growing part of the ICT stream today, and many businesses are using it to their advantage. Whether starting up a new business or continuing to grow an existing one, social networking is an ideal way of placing the business and products in front of customers. Social networking offers the chance for your business to be viewed by over 500 million potential clients worldwide. A survey completed in 2009 found 70% of Canadians are using Social Media, and this survey showed only 4% of rtheastern Ontario Businesses are taking advantage of this. rthern Ontario Businesses do not seem to recognize that web-based applications will assist them in streamlining their business, improving communication and better promoting or selling goods and services. The lag in technology or web based applications in rtheastern Ontario businesses may come as a result of only a quarter of employees having had some degree of computer training in the past three years. With technology constantly evolving, training opportunities are of an extreme importance to keeping business owners and employees as up to date as possible. Training can be simple hour-long workshops to learn a new computer program or more extensive day workshops to understand how to enter the online world. Regional technology development organizations, small business centers and community development corporations need to work with small businesses to develop a business plan with emphasize on incorporating technology, as well as formulating a clear plan for its adoption. As per the survey findings, the business plan needs to focus on the purchasing, maintenance, and utilization of technology. Perhaps by encouraging those with business plans currently utilizing technology to encourage other businesses to do likewise, we could build a more connected rtheastern Ontario. Half of respondents stated that they would be interested in attending workshops and seminars on how technology can help grow their business. In 2008 the Ontario Ministry of Small Business and Entrepreneurship published a guide on How You Can Profit From E- Business which provides business owners with crucial information NEOnet s SME Technology Promotion & Awareness Adoption Report 8

10 concerning the development of a business website. In addition to the E- Business resource booklet, NEOnet will be offering E-Business Seminars that will provide numerous tools and suggestions on how to get the most out of the Internet. Search Engine Optimization, Customer Relationship Management, Online Security, Voice Over Internet Protocol (VOIP) and how to effectively use Social Media will be some of the topics covered to help business owners grow a more connected and competitive business environment in rtheastern Ontario. For more information or to have an E-Business session held in your community please contact Amber Hamilton at ext. 4 or ahamilton@neonet.on.ca NEOnet s SME Technology Promotion & Awareness Adoption Report 9