They might be confident about the future, but small businesses are still finding it a challenge to adopt new technologies.

Three weeks ago, when Sensis released its quarterly Yellow Pages Business Index, it was revealed that small to medium-sized businesses were not suffering from the threat of war or the harsh effects of the drought, bushfires or terrorism to the extent that had been expected.

Indeed, business confidence had risen over the previous quarter, with a net balance of 55 per cent of small and medium businesses confident about their business prospects, compared with 52 per cent for the previous quarter.

However, the rise in business confidence masks the reluctance of some small businesses to exploit the internet within their structures.

The reality for many small business owners is that, though they recognise the need for new technology, it is not top of their list.

When Microsoft asked its SME customers to rank eight business issues in order of importance, managing company finances was the top response (74 per cent), while maintaining and improving IT was at the bottom (33 per cent).

That result does not mean that most of owners are technology shy. But the owner-manager decision makers who lack an IT-dedicated resource or the time for technology training can misunderstand how technology will help a business work more efficiently and effectively.

Other research revealed the impact of time-poor owners, with 59 per cent of small businesses admitting that they only buy IT when their existing equipment fails. Only 11 per cent of small businesses plan their IT budget in advance.

"For small businesses, the rarest of commodities is thinking strategically about the business," said Kevin Burke, director of small business at Microsoft Australia.

While small businesses tend to worry about what is happening right now, when they do take the time to evaluate their technological needs they see the benefit, particularly when they realise they can utilise existing technology.

"It's important to remember that the internet and your online offering are just like starting another branch of your business," said Marc Phillips, managing director for APT Strategies, a market research firm that surveys technology and usage.

"You don't have to create an entirely new business to utilise the internet, just extend and improve the one you already have."

Although 70 per cent of SMEs have internet connections, the main use is for email and a website.

Mr Phillips sees businesses extending their online activity in three areas: improvements in staff productivity, and better interaction with suppliers and with customers that will cut costs and provide a competitive edge.

"It's not just about selling things but about saving money," he said.

For example, staff can send items previously dispatched by hand, like designs, proofs and mail, over the net. Extranet connections can be utilised to arrange meetings with suppliers. And foreign customers can be serviced easier.

Software companies are also trying to appeal to SMEs by developing practical products that make business life easier.

Examples include the latest version of Microsoft Office XP Smart Tags for QuickBooks 2003 that imports data into an Office document from QuickBooks without the need to open the application.

Another is xpSMS, a short message service fully integrated into Microsoft Office XP.

Contact:
APT Strategies Pty. Ltd.
PO Box 1644
Double Bay, NSW 1360
Telephone: +61 2 9332 1480
Facsimile: +61 2 9331 6623
Email: info@aptstrategies.com.au