On average in New Zealand 30% of small businesses, five or fewer employees, own a domain name or website. I wonder what the other 70% are doing. Considering that In New Zealand 84% of enterprises employ 5 or less full time equivalent staff, the development of the Internet marketplace must be highly underdeveloped. Particular industries such as professional services, tourism and hospitality have had a much higher uptake on internet marketing.
With all this in mind, what role should the Internet play in a small business? For starters, the internet can help a small business present the professional image of a blue chip company. The Internet is also especially suited to helping small businesses develop markets outside of their geographic area, exposing niche products to the world.
So what is holding New Zealand small businesses back? Firstly, Internet solutions are often associated with high implementation costs. Small businesses that operate on tighter cash flows often lack the extra capital to invest in development projects. Secondly, some small business owners don’t have the time or level of expertise to implement an Internet solution to the problems that they face in business. Finally, the level of internet development in a small business is linked to the operator’s perception of demand from their consumers.
The Internet industry has responded to the needs of the small business market by supplying them with do it yourself solutions, which is far off track from what small businesses need. A small business is better suited with a solution provider that manages the majority of their Internet needs for them. Internet solution providers should also consider education as the key to their business proposition.
The small business market will continue to accelerate at a relatively slow pace unless many of these factors can be addressed. It is time for business leaders in New Zealand to focus on educating small business owners on how the Internet can be used as a valuable tool.
