e-commerce among ok value-added entrepreneurs glenn muske rodney holcomb mike woods e-commerce oct,...
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E-Commerce Among OK Value-Added Entrepreneurs
Glenn Muske
Rodney Holcomb
Mike Woods
E-commerceOct, 2001
Research Objectives
Identify start up & growth road blocks for value-added business owners
Examine information technology use– Access & ability to compete in global market
Literature
Medium to Large Business – 80% have sales web site
Small Business – 50% have sales web site– Small Business Computing, May, 2001
Methods
Telephone Survey– 274 Micro business
owners• 10 employees or less
– 70% Response rate• N=193
– 103 Value-added businesses
• 71 food• 32 other agriculture
Total Sample Value-Added
54% Male 56%
51 Mean Age 51
23% Farm 28%
25% Rural, Non farm 22%
24% City> 50,000 18%
3 # employees 3.2
Demographics
Reasons to Start
Control/Independence 50%
Financial 18%
Use Ag Output 12%
All Respondents Value-Added
87% WP 83%
80% Financial 83%
62% Graphics 60%
45% Production 49%
51% Publications 55%
59% Database 62%
89% Internet 90%
Technology Use
Internet Use
96% Email
66% Marketing Information
68% Customer Information
46% Leads
42% Customer Service
39% Purchasing
38% Travel
28% Non Web Sales
Why not?
48% Lack of Knowledge/Desire
Overall Profit
All Respondents Value-added
29% 0 33%
21% <$500 21%
18% <$25,000 15%
6% >$75,000 4%
Web site Owners
(n=34)
No Web site(n=69)
67% Male 51%
51 Mean Age 51
29% Farm 28%
21% Rural, Non farm 23%
27% City> 50,000 15%
3.6 Avg # employees 3
Value-Added OwnerDemographics
Reasons to Start(Web site vs No Web site)
Control/Independence 62 vs 44%
Financial 9 vs 23%
Use Ag Output 15 vs 10%
Web Development
# with web sites – 34 Average # months on Web –18 Who designed?
– Company – 57%– Individual (not owner) – 29%
Who maintains?– Company – 38%– Self – 35%– Individual (not owner) – 27%
Web Site Owners
Web Revenue– Mean = $7430– Median = 42250
Web Expenses– Mean = $1435– Median = $500
Web Profit
Mean = $6359 Median = $1500
35% Earn $0 or less 12% Earn $19,500 or more
3% Web decreased overall profit 6% Web added to overall profit
Web Site Sales
All Web Owners
Value-addedon Web 50% of sales within
Value-added –No Web
37% 36% <50 miles in OK 63%
12% 13% >50 miles in OK 6%
19% 6% Surrounding States 6%
24% 13% U.S. 0%
3% 0% World 0%
Significant Factors of Value-added Web Owners
Sell less with in 50 mile radius Sell more outside of 50 mile radius in OK Sell more in U.S. Want to increase sales Added new product/service Improved customer service
Significant Factors of Value-added Web Owners
More likely to have used OK Coop. Ext. More likely to expand somewhere else
– Rural person more likely to move outside county
More likely to have had business training More use of computer
– Finance, Internet, purchasing, customer info, leads
Significant Factors of Value-added Web Owners
More likely to have modified goals because of awareness of complexity
More likely to feel have adequate financing More full-time employees (2.8 vs 2) More likely to say quality evaluation a
problem
Affect of Time with Web Site
Profits not significantly different– Substantial
• $9983 (≥ 18 months) vs. $3138 (< 18 months)
Sites ≥ 18 months– More interested to expand U.S. sales– More likely spouse has a job outside– More likely to be “other ag” business
Web Satisfaction
With contacts– 46% Somewhat or very satisfied
With sales– 46% Somewhat or very satisfied
Web Problems
35% None
19% Development
23% Updating
12% Hits
12% Other
More Information
Glenn Muske
Micro & Home-Based Business Specialist
OK Cooperative Extension Service
405-744-5776