E-Commerce and small and medium-sized enterprises in S.E. Wales

One region where e-commerce will have a particular impact for small and medium-sized enterprises (SMEs) over the next few years is South East Wales (SEW). In response to this a survey was undertaken by the Welsh Enterprise Institute (WEI) in collaboration with the Open University Business School and Rennes ESC in Brittany to assess the e-commerce activity of firms within the SEW area. The survey was conducted using a database of 3,000 members provided by the Cardiff Chamber of Commerce, Trade and Industry and a survey form was sent to the sample as a postal questionnaire. Results from the survey demonstrated that nearly all firms used some form of Information Communication Technologies (ICT). The results also highlighted that a significant proportion of the sample (77%) were currently using a Web site to increase trade or improve opportunities for e-commerce. Furthermore, it was observed that firms in the personal services, distribution and transport industries were less likely to utilise a Web site than firms in the manufacturing, business services and hospitality industries. Despite the large proportion of firms that had a Web site, only 11% of businesses reported that their site enabled customers to order and pay for products online although 42% of respondents considered e-commerce to be important for their business' future. This chapter therefore argues that these results clearly underpin the necessity for an e-commerce policy in SEW for the future competitiveness of the area. There are real opportunities to develop and diversify the SEW economy through e-commerce.