“E-Commerce and Small and Medium-sized Enterprises in South East Wales: A Clear Case for Intervention?”

One region where e-commerce will have a particular impact for small and medium-sizedenterprises (SMEs) over the next few years will be in South East Wales (SEW). In response tothis a survey was undertaken by the Welsh Enterprise Institute (WEI) in collaboration with theOpen University Business School and Rennes ESC in Brittany to assess the e-commerce activityof firms within the SEW area. The survey was conducted using a database provided by theCardiff Chamber of Commerce, Trade and Industry.Results from the survey demonstrated that nearly all firms used some form of InformationCommunication Technologies (ICT). The results also highlighted that a significant proportion ofthe sample (77%) were currently using a Web site to increase trade or improve opportunities fore-commerce. Furthermore, it was observed that firms in the personal services, distribution andtransport industries were less likely to utilise a Web site than firms in the manufacturing, businessservices and hospitality industries. Despite the large proportion of firms that had a Web site, only11% of businesses reported that their site enabled customers to order and pay for productsonline although 42% of respondents considered e-commerce to be important for the future oftheir business.This paper therefore argues that these results clearly underpin the necessity for an e-commercepolicy in SEW for the future competitiveness of the area. It also recommends that the WalesAssembly Government (WAG) should embrace and develop an e-commerce business culture forthe benefit of areas like SEW. If this policy is not forthcoming it is contended that there aresubstantial risks to SEW in falling behind the rest of the United Kingdom (UK) that will onlyserve to add to the economic disparities already being endured by the Welsh economy. There arereal potential opportunities to develop and diversify the economy of SEW and to develop aglobal approach to the marketing and selling of products and services. In fact, this researchestablishes e-commerce not only as a priorit