Small business benefits for, barriers to, and information sought using the Internet

Small businesses require the right information to enhance their competitiveness, increase access to markets, and improve profitability. The internet is widely recognized as a valuable source of information, yet small businesses are reported to lag behind their larger counterparts in internet adoption. This paper reports on research investigating the perceptions of micro-sized small business owner-managers in terms of benefits for and barriers to internet adoption, and what information they seek using this channel. A survey of micro-sized small business owner-managers (n=177) was undertaken in December 2008 via mail instrument. Findings suggest that the 15 benefits of internet adoption identified in the literature are important to owner-managers. Greater internet use is correlated with a perception that the internet improves a firm’s image, helps provide better customer service, facilitates increased customer satisfaction, assists in increasing productivity, and provides continuous advertising globally. In contrast, of 12 barriers reported in the literature in 2000, only one barrier (the possibility for decreased productivity through frivolous use) tested as statistically significant in 2008. Of the 17 types of information sought, 10 types were significantly correlated with respondents’ age and educational qualifications or the age of the business. The findings suggest that managers have embraced the benefits of the internet whilst reducing their levels of concern regarding its use.