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CANADIAN SMALL BUSINESS PROFITS FROM INTERNET

Source: Hot Bytes e-Newsletter

Posted on November 10, 2002

      Canadian businesses that adopt Internet business solutions can realize financial benefits that include increasing revenues and reducing costs, which can lead to profit increases of as much as 150 percent, according to the Canadian Net Impact study.

      Sponsored by the Canadian e-Business Initiative's Benchmarking and Metrics team and conducted in collaboration with Cisco Systems Canada Co., the Schulich School of Business at York University and IDC Canada, the study is the first of two reports exploring the state of e-Business technology adoption in Canada.

      It found that 50.2 per cent of Canadian SMEs are currently using or implementing Internet business solutions, while another 20.3 per cent intend to adopt the Internet within the next three years.

      On average, firms currently using the Internet increased their revenues by 7 per cent and realized an average savings in costs of 9.5 percent.

      Customer-focused solutions are the most widely adopted. By contrast, internet solutions focusing on "back office" operations such as e-procurement are less common




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