E-business in Maltese Enterprises

Alfred Camilleri

Director-General

National Statistics OfficeLascaris Valletta CMR 02Tel: 25997000Fax: 25997205 / 25997103E-mail: nso@gov.mt www.nso.gov.mt

Scope of exercise

• Different NACE divisions covered;

• Comprehensive census among enterprises with 10 and more full-time equivalent employees;

• Sample among enterprises with less than 10 full-time equivalent employees;

• Sample of 1,474 enterprises;

• Response rate of 70 per cent.

Metadata• Definition

Micro 1-9 FTE employees Small 10-49 FTE employees Medium 50-248 FTE employees Large 250 and over FTE employees

• Reference period

All information as at 2005 except for: purchases data refer to 2004 turnover data refer to 2004

• Questionnaires

One addressed to enterprisesOne addressed to individuals and households

Computer usage

Enterprises with computers

0.0

20.0

40.0

60.0

80.0

100.0

per cent

w ithout computers 41.7 8.1 0.2 0.0

w ith computers 58.3 91.9 98.8 100.0

micro small medium large

Internet usage

Enterprises w ith access to Internet

0.0

20.0

40.0

60.0

80.0

100.0per cent

w ithout internet 49.6 12.6 2.5 0.0

w ith internet 50.4 87.4 97.5 100.0

micro small medium large

Broadband access

Refers to enterprises with at least 1 broadband connection.

Enterprises with a broadband connection

0.0

20.0

40.0

60.0

80.0

100.0per cent

without broadband 19.9 15.6 5.6 0.0

with broadband 80.1 84.4 94.4 100.0

micro small medium large

Enterprises with website/homepage

• 87.7 per cent of establishments in the hotel and restaurant industry have their own homepage;

• 46.5 per cent of manufacturing enterprises have their own homepage.

Enterprises with website/homepage

0.0

20.0

40.0

60.0

80.0

100.0per cent

w ithout w ebsite/homepage

79.9 49.7 30.2 28.4

w ith w ebsite/homepage

20.1 50.3 69.8 71.6

micro small medium large

Enterprises purchasing online (1)

• 46.8 per cent of small, medium and large enterprises order products/services via Internet;

• 14.4 per cent of small, medium and large enterprises order more than 25 per cent of their total purchases.

Enterprises that purchased via Internet

0.0

20.0

40.0

60.0

80.0

100.0

per cent

did not purchase online 83.2 55.8 42.3 45.8

purchased online 16.8 44.2 57.7 54.2

micro small medium large

Enterprises purchasing online (2)

• 24.5 per cent of small, medium and large enterprises paid online for products/services ordered;

• 13.2 per cent made use of specialised Internet market places.

Enterprises in top 5 sectors that engaged in online purchasing

0.0

50.0

100.0

150.0per cent

engaged in 62.5 49.6 48.5 47.9 46.8

did not engage in 37.5 50.4 51.5 52.1 53.2

post & communication

transportw holesale &

retailhotels &

restaurantsmanufacturing

Enterprises selling online

Enterprises that sold products via Internet

0.0

20.0

40.0

60.0

80.0

100.0per cent

did not sell online 98.4 86.6 84.4 68.4

sold online 1.6 13.4 15.6 31.6

micro small medium large

• 14.3 per cent of small, medium and large enterprises received orders for their products through the Internet;

• 2.6 per cent of total turnover of small, medium and large enterprises was generated through e-sales.

Sectoral analysis of online sales (%)

Business to business

Business to consumer

Total

Manufacturing 3.6 5.4 9.0

Hotels & Restaurants 5.2 39.2 44.4

Wholesale & Retail 3.5 8.3 11.8

Transport 4.9 10.4 15.3

Post & Telecommunications 0.0 62.5 62.5

Small, medium and large 3.8 10.4 14.2

Sectoral online sales by destination (%)

Malta EU Other

Manufacturing 62.1 23.8 14.2

Hotels & Restaurants 3.7 76.0 20.3

Wholesale & Retail 76.6 17.8 5.7

Transport 27.0 69.6 3.4

Post & Telecommunications

66.7 26.7 6.6

Small, medium and large 43.8 45.1 11.1

Perceived benefits of e-business (SML)

Perceived benefits of Internet sales

8.7

4.9

7.1 7.0

10.1

6.27.2 8.0

5.9

3.9

3.9

3.7 3.9

2.2

4.13.9 2.7

3.7

0.8

2.3

1.7 1.3

0.9

1.72.0

1.71.8

1.1

3.42.0 2.2

1.32.5

1.4 2.13.1

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

company image reducing costs speeding upprocesses

improving quality reaching newcustomers

launching newproducts

keeping up withcompetitiors

expandinggeographically

customisation

per cent

very important important less important not important

Perceived barriers to e-business (SML)

Perceived barriers to Internet sales

0.020.040.060.080.0

100.0per cent

not important 54.5 53.3 55.3 58.2 61.0 83.1

less important 8.1 9.8 8.0 8.3 9.9 0.5

important 8.3 10.5 11.7 11.9 9.7 0.5

very important 14.8 12.0 10.7 7.3 5.1 1.7

products not suitable

customers not ready

payments security

uncertainty on legal framew ork

logistical problems

other

ICT usage by individuals & households

• Aims to investigate level and type of computer usage by individuals and their households;

• A sample of 1,500 individuals aged between 15 and 74 years;

• Section of questionnaire addressed to individuals’ households;

• Response rate of 82 per cent.

Computer availability in households

• 48.4 per cent have a desktop computer;• 8.6 per cent have a portable computer (laptop);• 0.9 per cent have a handheld computer.

Categories not mutually exclusive.

Households w ith PCs

have 50.5

do not have 49.5

Internet connectivity in households

26.8 per cent have a broadband connection.

Households w ith Internet access

don't know 1.0

have 44.5

do not have 54.5

E-purchases

Orders/payments through the Internet by individuals

betw een 3 and 12 months 0.4

less than 3 months ago 10.5

more than 12 months 2.4

never 25.8

manual e-mails 6.4

no Internet 54.5

Analysis by product of orders/payments through Internet (%)

Films/Music 7.1

Tickets for Events 3.7

Clothes/Sports goods 1.1

Books/Magazines/

Newspapers/E-Learning 0.6

Food/Groceries 0.4

Others 1.9

Percentages refer to total population 16-74 yrs

Reasons behind non-Internet orders/sales

Preference to shop in person 12.5

No need felt for medium 12.2

Lack of security in payment 7.0

Concern re privacy 5.5

Concern re trust of product 2.2

Other reasons 6.0

Percentages refer to total population 16-74 yrs

Thank You