SME are slow adapters of e-commerce

TORONTO, January 25, 2001 - An e-business survey conducted by Ipsos-Reid on behalf of the Canadian Institute of Chartered Accountants (CICA), Bell Canada, bizSmart, and CIBC found that while 77% of small to medium-sized enterprises (SMEs) expect that the Internet will have a positive impact on their businesses over the next two years, only 32% have developed a strategy for their Internet presence.

The study, which analyses the e-capabilities of small and medium-sized enterprises in Canada, is based on 800 random telephone interviews conducted among senior management of businesses with between 10 and 100 employees and revenues greater than $1 million.

Results of the study suggest that while senior managers of SMEs believe in the value of the Internet/E-commerce, most have yet to fully integrate this new technology into their enterprises. More than half the companies surveyed have already established a Web site, and those that have not, are planning to develop one within three years. The most commonly reported reasons for developing a Web site, however, were "providing information about the company's products"(61%), and "communicating information about the company" (58%). Less than one in four companies surveyed currently take orders through their site and only 22% of the respondents reported that advancing the organization's e-commerce capabilities is a high priority.

"I'm not surprised," says Jim Carroll, FCA, Canadian author of some 28 books about e-commerce, the Internet and the wired world, who helped formulate the study. "It is a tremendous challenge for any executive to figure out e-business and how to leverage it, given the massive and often-ridiculous hype that has surrounded anything Internet-related over the past five or six years."

Results of the study suggest that small and medium-sized companies need support in becoming fully e-capable. Obtaining advice on adapting their strategy for the Web and locating appropriate suppliers, however, were cited as the two most significant barriers to establishing a Web presence for many of these companies. When specifically asked which professionals they would trust to provide advice on an e-commerce strategy, accountants (27%) rated above business or management consultants (24%), lawyers (17%), and bankers or investment consultants (14%).

"From my perspective, accountants - with their intense insight into systems, transactions, finance and people - are a logical choice for helping these companies leverage electronic technologies to their advantage," says Carroll. "After all, who better understands how to build and put into place financial transaction systems, whether they be for internal use or for the new interconnected enterprises of the future?"

A summary of the report is available on the CICA web site

The Canadian Institute of Chartered Accountants (CICA), together with the provincial and territorial institutes of chartered accountants, represents a membership of more than 66,000 CAs and 8,500 students in Canada and Bermuda. The CICA conducts research into current business issues and sets accounting and assurance standards for business, not-for-profit organizations and government. It issues guidance on control and governance, publishes professional literature, develops continuing education programs and represents the CA profession nationally and internationally.

Bell Canada provides a full range of communications services to customers, including wired and wireless local and long distance telephone services, Internet access, high-speed data services and directories. Bell Canada, its telecom partners and subsidiaries provide services through 13.6 million access lines, including 11 million in Ontario and Quйbec. Bell Canada also serves more than 2.7 million wireless customers through Bell Mobility. Bell Canada is 80% owned by BCE Inc. of Montrйal and 20% owned by SBC Communications Inc. of San Antonio, Texas. Bell Canada's Internet Web site is located at http://www.bell.ca. News releases, speeches and background information are in the Newsroom. Our e-mail address is [email protected].

CIBC is one of North America's leading financial institutions with more than eight million personal banking and business customers. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, in the United States and around the world.

bizSmart, a unique offer of essential services designed to save Canadian small business owners and entrepreneurs time and money, is provided by CIBC and STAPLES/Business Depot along with leading brand-name suppliers. bizSmart members have access to a package of services including no-fee daily business banking, everyday low pricing or discounted buying on goods and services, communications and management services, and free access to the bizSmart Knowledge Centre, a comprehensive resource library of management information. bizSmart services are available through the Internet at www.bizsmart.com, telephone, CIBC bank machines and at bizSmart Centres located in selected STAPLES/Business Depot stores. bizSmart Financial Services are provided by CIBC, one of North America's leading financial institutions with more than eight million personal banking and business customers.

For more information, contact by email or telephone:
Natalie Lacey, Ipsos-Reid (416) 324-4900
Peter McLean, CICA (416) 204-3268
Catherine Hudon, Bell Canada (416) 581-4268
Rob McLeod, CIBC (416) 980-3714
Jane Sharpe, bizSmart (416) 861-7910