An Investigation into Issues Influencing the Use of the Internet and Electronic Commerce amoung Small-Medium Sized Enterpirses

Since small-medium sized enterprises (SMEs) play a vital role within many major economies throughout

the world, their ability to successfully adopt and utilize the Internet and electronic commerce is of prime

importance in ensuring their stability and future survival. This paper highlights some of the important issues

identified by SME managers relating to the adoption of Internet related technology that government policy

makers will have to address if their initiatives aimed at increasing adoption among SMEs are to succeed. Initial

findings will be reported of a study carried out by the authors into the use made of the Internet and electronic

commerce and key issues influencing its use by SMEs among a sample of 484 businesses within West Central

Scotland. The study has drawn upon a number of data collection techniques such as questionnaires sent to 2,500

small businesses, in-depth face-to-face interviews and telephone interviews. With a base response rate of 20%

the data reveals interesting details relating to actual connectivity levels, attitudes with regard to how small

businesses perceive the Internet and electronic commerce, as well as the impact of government policy on

Internet connectivity and adoption. The results gained from the study will be compared with figures relating to

businesses in the rest of Scotland and the UK, as well as the US, Canada and Japan, and European countries that

include Sweden, Germany, France and Italy. The issues raised from this study will be compared with similar

studies carried out in other countries such as Australia, New Zealand and British Columbia, as well as countries

within the European Union in order to provide a wider international context for the results of the study.