http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 16.31Change: -0.01
R/$ = 14.22Change: 0.03
Au 1292.99 $/ozChange: 1.84
Pt 1079.50 $/ozChange: 3.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Apr 06, 2012

Lack of a website can mean no business

Back
Africa|Business|Education|Technology|Training|Africa|South Africa|Products|Service|Services|Web Presence|Arthur Goldstuck|Smart Phones
Africa|Business|Education|Technology|Training|Africa||Products|Service|Services|||
africa-company|business|education-company|technology|training|africa|south-africa|products|service|services|web-presence|arthur-goldstuck|smart-phones



Over a third of small and medium-sized enterprises (SMEs) are in danger of appearing irrelevant to their customers without a website, with an ever-increasing number of people searching online for products and services.

The 37% of SMEs in South Africa with no Web presence are losing out on a significant channel of communication.

This is a key finding of the yearly SME Survey, which assesses the competitiveness of this sector of the economy. Principal researcher of the survey Arthur Goldstuck says other results from the survey have shown conclusively how having a website correlates with increased profitability.

Goldstuck indicates that some 79% of SMEs with a website report profitability, with 30% of these claiming to be strongly profitable. This is a significant difference, compared with those without a website, where only 59% report profitability and just 14% of these claim to be strongly profitable.

“The popular argument made by these businesses is that there are not enough people online to justify a Web presence. However, they fail to take into account the enormous uptake in smart phones. With more smart phones expected to be sold next year than any other type of phone, it could be fatal for an SME to adopt this viewpoint,” he says.

“In the digital age of smart phones, South Africa is witnessing the greatest acceleration of Internet use the country has ever experienced. This translates directly into more people going online to find services. I have no doubt that we are reaching the point where an SME’s website will become the glue that holds together all its other marketing efforts and activities,” he explains.

He points out that, when studying individual vertical markets, the great irony highlighted by the survey is that the financial services sector – supposedly a high-end area of business – has one of the lowest percentages of website use.

“Less than half, about 41% of all auditors, accountants and insurance brokers can be found online. This is particularly troubling given that the major banks all have a significant presence online and a vast array of Internet-based tools available for their customers. More and more people who are familiar with the banks’ websites will, when looking for an auditor or accountant, expect to find them online,” he adds.

Goldstuck suggests that many of these professionals are not yet online because 78% currently maintain a fairly high level of profitability. Therefore, they do not feel the need to stay with the times. However, he believes that, as the Internet becomes the single most important means of searching for a service provider, these SMEs will find themselves increasingly disadvantaged.

“In fact, the only sector with a lower per- centage, 36%, of websites is education. I think this is because many of these training institutions and specialist schools and colleges are targeting the mass market. Their failure to develop a website is an extreme example of the perception that not enough people in South Africa use the Web. These institutions clearly need to get online, and fast, as only 19% of respondents to the survey claimed to be profitable,” he says.

Goldstuck adds that he is not surprised to find that the information technology and telecoms sector has a massive 89% of companies online.

Edited by: Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
More
 
 
Latest News
Environmental Affairs Minister Edna Molewa
Cabinet has extended the contract of Department of Environmental Affairs (DEA) director-general Nosipho Ngcaba and approved the appointment of Limpho Makotoko as the new DEA COO.     “Under the leadership of Ngcaba, the DEA has consistently received clean and...
Mzwandile Masina
The Department of Trade and Industry (DTI) has invited companies to participate in a trade and investment mission to Ghana and Nigeria from August 8 to 12.   Companies in the agriculture and agroprocessing sectors, built environment professionals, automotive and...
Cabinet has approved the Industrial Policy Action Plan (Ipap) 2016/17 to 2018/19, which seeks to achieve a higher-impact industrial policy in difficult economic circumstances, including the difficulties faced by the domestic steel industry and the drought which has...
More
 
 
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149