Nearly 20% of Ireland’s offline SMEs are stopped from building a website or engaging in e-commerce because of a poor internet connection. This is according to the latest edition of the dot ie Digital Health Index published today by the IE Domain Registry (IEDR), the company that manages and maintains Ireland’s country domain, .ie.
 
The figures show that 14% of Irish SMEs rate their internet connection as ‘poor’ or ‘very poor’, a figure that rises to 25% in Connacht and Ulster. Despite these issues, almost a third (32%) of Irish SMEs want more digital skills and e-commerce training. 
 
The research also shows that E-commerce is becoming an increasingly important part of Ireland’s economy. Ireland’s share of the European e-commerce market is €9 billion and is expected to grow to €14 billion by 2021. However, most of this spend is going abroad to foreign retailers that offer more comprehensive online services.
 
While only 40% of Irish SMEs with websites can take sales orders, it is a noteworthy improvement on just 30% in the last wave of research only six months ago, indicating that SMEs are realising the benefits of selling online. 
 
While many offline SMEs struggle with the technical aspects of setting up and maintaining a website or social media page, or are kept offline by a poor internet connection, the majority (53%) of ‘offliners’ say there is simply ‘no need’ to have an online presence in their industry. However, the dot ie Digital Health Index reveals that SMEs with a website earn, on average, an additional €26,825 per annum.
 
Consumers expect businesses to be online Almost 70% said it is ‘frustrating’ if a business does not have a website, two-thirds say a business looks ‘outdated’ if it does not have one, and nearly 30% do not even trust a business that does not have a website. Furthermore, 59% of consumers said that if a business has no online presence, they would be less likely to use their services or do business with them offline.
 
Commenting on the research, Chief Executive of IEDR, David Curtin said, "Generally speaking, SMEs are actively embracing the benefits of an online presence and its power to grow revenues, improve customer relations, and analyse market behaviour. However, nearly 1 in 5 SMEs remain completely offline despite almost half of them acknowledging the importance of a website in some way."

He added, "Our research has shown time and time again that while many businesses do not see a need to have a website of their own, the majority of consumers strongly disagree. In fact, a business with no online presence, or even a poorly designed one, is likely to be damaging its offline reputation."

Source: www.businessworld.ie