The survey's principal analyst, Arthur Goldstuck, presented the interim findings of the survey at the launch of the Woza Online project last week.
"Having an online presence has never been more vital to the long term sustainability of a business, as the general public's access to the Internet continues to accelerate," he said. He pointed out that SMEs have quickly realised the value of having their own website, with some 65% of formal South African SMEs reporting that they have an online presence.
"Even more interesting is the response we have received from a full 20% of those surveyed, who said that their businesses would not have been possible without a website."
"To put this into perspective, Elizabeth Thabethe, deputy minister of the dti has stated that around nine million people in South Africa are employed by SMEs. In other words, had these SMEs not had an online presence, a further 1.8 million people would potentially be unemployed.
"The interim results of the 2012 SME Survey have already indicated that there is a strong link between being online and being competitive, profitable and sustainable. Some 79% of SMEs with a website reported profitability, whereas only 59% of SMEs without a website reported the same," explains Goldstuck.
"Clearly these findings highlight the benefits of being online for SMEs. Now Woza Online means that small businesses across the country can join the digital revolution, at no expense. Interim results of the survey have also shown that a company website, as well as the use of cloud computing, is closely correlated with being highly competitive and strongly profitable."
He adds that those SMEs in business for 10 years or longer are far more likely (72%) to have websites than relatively new businesses, indicating that the survey shows that of those operating for less than three years just 46% are online.
"Since it is the older businesses that tend to have the websites, it seems obvious that for a new SME to obtain the same advantages, it is crucial for it to build an online presence as quickly as possible. In addition, since the majority of those online are saying they are very profitable, SMEs should take advantage of the opportunity presented by Woza Online. After all, there is little doubt that an effective online presence is the key to a successful business. Such success will, in turn, have a positive impact on the SA economy as a whole," he concludes.
For more information, go to www.smesurvey.co.za.
