Report Tracks Kiwi Small Business Use of the Net

Kiwi Businesses Are Increasingly Using The Internet As A Daily Work Tool Says Special ACNielsen Report

AUCKLAND, 10 October 2000 - For anyone wanting to get to grips with the rate of business change in New Zealand a report by ACNielsen documents clearly just how much day to day commerce is now being shaped by new technology.

ACNielsen’s Small Business Internet Monitor 2000 interviewed 1500 small business financial decision makers nationally between 15 May and 16 June about Internet use during the preceding four weeks.

The report found that the proportion of firms with at least one PC had climbed from 78 percent to 84 percent over the last 12 months, but the numbers with Internet access had jumped even faster – up from 58 percent last year to 69 percent in 2000.

“Even allowing for the sometimes hyped claims made for the Internet, I think most people are likely to be surprised by just how quickly New Zealand small business decision makers have accelerated in their move to the Internet,“ says Gary Martin, Director Syndicated Services, ACNielsen.

“We are seeing a real shift, as companies become more and more ready to build their business practices around the opportunities they see the Internet offering them.”

By focusing on businesses turning over less than $5 million the report maps a change in New Zealand commerce as it is being felt close to ground level, Mr Martin says.

“As the Internet has grown, attention and study have understandably focused largely on the big players, online service providers and the burgeoning numbers of home users. But for this report we have examined the way smaller enterprises are coming on to the web and the things they are using it for.

“For anyone whose own business requires a close knowledge of small business processes, the report closely documents a constantly evolving level of Internet business activity,” Mr Martin says.

For most businesses, accessing information and email remained high priorities in their Internet usage.

“But the report also identified the use of the Internet for e-commerce. Almost one quarter of the businesses surveyed that have access to the Internet have used it to purchase products and services in the past four weeks. An even higher proportion had used it for Internet banking,” Mr Martin says.

The report identifies the ISPs used by small businesses, and the proportion that have their own websites.

Significantly, the Small Business Internet Monitor 2000 also identified marked correlations between signs of business success such as growth in turnover and intentions to grow and Internet access, Mr Martin says.

“This report identifies just how small businesses are using the Internet, and for anyone wanting to target them as a market it provides the opportunity to drill down into detailed analysis of current use as well as pointing to future trends,“ Mr Martin says.

About ACNielsen
ACNielsen, with 1999 revenue of US$1.5 billion, is the world’s leading market research firm, offering measurement and analysis of marketplace dynamics, consumer attitudes and behaviour, and new and traditional media in more than 100 countries. Clients include leading consumer product manufacturers, retailers and service firms, media and entertainment companies and the Internet community.

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