“An Identification and classification of Ebusiness barriers to growth withinthe SME sector”

The development of Ecommerce within Small and Medium Enterprises (SMEs) in Wales isrestricted by a number of barriers. Various projects initiated by government and academic bodiesexist to assist SMEs overcome these barriers. However, whether these projects represent theneeds of SMEs is debatable. The opportunity for SMEs to exploit information communicationtechnology has increased due to the improved affordability and sophistication of computingequipment, along with the development and utilisation of the Internet. This progress has seenthe emergence of Ebusiness and Ecommerce, whereby SMEs can operate, communicate andtrade in global markets. Recent surveys by academia, government and trade bodies haveidentified Wales as the worst performing region for Ebusiness in the UK with sceptical attitudestowards its increased adoption.This paper reports on a quantitative study investigating Ebusiness utilisation within SMEs inWales. Specifically this paper focuses on the key barriers influencing the adoption of Ebusinesswithin SMEs in Wales. The survey of the Cardiff Chamber of Commerce (CCC) membershipwas undertaken in 2001. The CCC is a trade body of approximately 1000 SMEs encompassing ageographical area covering Cardiff, Bridgend, Newport and the Valleys areas. The postal surveyand telephone follow up achieved a response rate of 100 SME classified enterprises, a responserate of approximately 10%.Academic research has identified these barriers as deficiencies in financial resources, time,information and skills; concerns over security, legal issues and competition and doubts over theapplicability of Ebusiness to their business practices and cultural and infrastructure issues. Thesebarriers are a major influence as to how Ebusiness will develop within SMEs and this paperidentifies the significance of each factor in constraining growth. The paper concludes byinvestigating the assistance for SMEs from academia, government and trade to developEbusiness activities and questioning whether these are representative and effecti