Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions - Adapting e-business policies in a changing environment: The lessons of the Go Digital initiative and the challenges ahead
Date: 2003-03-27
Institutions: European Commission
Subjects: EU industrial policy, Internet, electronic commerce, information technology, small and medium-sized enterprises

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 27.3.2003

COM(2003)148 final

COMMUNICATION FROM THE COMMISSION
TO THE COUNCIL, THE EUROPEAN PARLIAMENT, THE EUROPEAN
ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE
REGIONS

Adapting e-business policies in a changing environment:
The lessons of the Go Digital initiative and the challenges ahead

Table of contents

Introduction ................................................................................................................................ 3

1.

1.1.

1.2.

1.3.

2.

2.1.

2.2.

2.3.

3.

THE USE OF ICT AND E-BUSINESS BY EUROPEAN SMES .............................. 4

ICT infrastructure and e-commerce uptake.................................................................. 4

From e-commerce to e-business: A new challenge for SMEs ..................................... 5

The need for comprehensive e-business indicators...................................................... 6

A NEW APPROACH FOR E-BUSINESS POLICIES – THE NEED FOR SETTING
QUANTITATIVE TARGETS ..................................................................................... 8

Towards better adapted and more innovative e-business policies for SMEs............... 8

The need for better targets for e-business policies....................................................... 9

The new challenges for e-business policies in favour of SMEs................................. 13

CONCLUSIONS........................................................................................................ 23

ANNEX: The statistical picture ............................................................................................... 24

1. The Eurostat “Community enterprise surveys on ICT usage” ............................................. 24

2. The e-Business W@tch survey and scoreboard.................................................................... 26

2

INTRODUCTION

In 2001, the European Commission launched the Go Digital initiative,  with  the objective of
helping  SMEs  to  better  use  the  Internet  as  a  business  tool.  This  Communication  reviews
growth in the use of information and communication technologies (ICT) and e-business tools
by  European  business,  and  notably  small  and  medium-sized  enterprises  (SMEs),  and  the
policy challenges that emerge from this picture. What has changed in recent years and  what
needs to be done in the future to help SMEs to “go digital”?

Whilst it  is  accepted  that  more  needs  to  be  done  to  stimulate  the  use  of  ICT  by  SMEs,  the
main  policy  challenge  has  changed  from  getting  SMEs  connected  to  the  Internet  to  the
effective  and  productive  integration  of  ICT  into  business  processes.  Here  SMEs  are  still
lagging  behind  larger  enterprises,  which  could  impair  their  competitiveness  and  thus  slow
Europe's overall productivity growth.

In  other  words,  the  policy  focus  is  shifting  from  promoting  e-commerce  to  a  more  holistic
view of e-business as a whole,  which includes not only buying and selling over the  Internet
but also the productive use of ICT. This view is clearly reflected in the eEurope 2005 Action
Plan objective of creating a favourable environment for e-business, which defines e-business
as comprising both e-commerce (buying and selling online) and the restructuring of business
processes to make best use of digital technologies. The new goal is to promote the take-up of
e-business, with the aim of enhancing the competitiveness of European enterprises and raising
productivity  and  growth  through  investment  in  ICT.  This  would  complement  efforts  to
integrate  European  markets  through  the  digitisation  of  the  economy,  which  remains  a  high
priority.

The  re-orientation  of  policy  towards  integrating  e-business  into  normal  business  should  be
supported by the many  national and  regional e-business  initiatives in order  to  spur  progress
towards  the  Lisbon  target.  Indeed,  effective  measures  to  assist  SMEs  in  the  process  of
business transformation have to be taken at national and regional, if not at local level. As part
of the Go Digital initiative, many e-business initiatives in favour of SMEs have been analysed
and assessed against different efficiency criteria, resulting in the identification of 19 examples
of good practice to promote awareness and to encourage and facilitate the use of the Internet
for SMEs. However, the shift towards e-business is posing new challenges for SME policies,
which need to be addressed by future initiatives in this field.

This Communication presents the latest available statistical evidence on the use of ICT and e-
business  by  SMEs  and  identifies  the  main  e-business  policy  challenges  at  national  and
European  levels,  building  upon  the  results  of  the  benchmarking  report  on  regional  and
national e-business policies and the most advanced e-business initiatives that could be found.
The objective is to stimulate policy changes at national and European levels, by providing a
policy framework for  future actions and by preparing for more appropriate policy targets in
response to the practical needs of European enterprises to transform their business processes.
By  raising  these  issues,  this  Communication  is  responding  to  Industry  Council  requests  to
"intensify  dialogue,  exchange  regularly  experience,  identify  specific  goals  for  e-business
policies and to share best practices"1.

1

Conclusions of the Industry Council 9938/02, of 6 June 2002

3

                                                
1.

THE USE OF ICT AND E-BUSINESS BY EUROPEAN SMES

At  the  time  when  the  eEurope  2002  Action  Plan  was  adopted,  there  was  only  limited
statistical  information  on  e-commerce  and  ICT  usage  by  European  enterprises,  in  particular
with respect to SMEs. For this reason, the Go Digital Action Plan2 included a specific action
concerning the measurement of the take-up of ICT and e-business. This action has resulted in
the  development  of  the  e-Business  W@tch3,  which  complements  the  Eurostat  surveys  on  e-
commerce and ICT usage by enterprises. The main results of these two statistical sources are
summarised in this chapter and presented in more detail in the Annex.

1.1.

ICT infrastructure and e-commerce uptake

Basic ICT infrastructure and access to the Internet are no longer considered major barriers to
e-business uptake in Europe. According to Eurostat, over 90% of enterprises with more than
10 employees are using computers and almost 80% of them are connected to the Internet. The
e-Business W@tch found a similar overall picture for small enterprises (0-49 employees): in
mid-2002, more than 90% of them used computers and over 80% had access to the Internet.
Practically all large enterprises (i.e. those with over 250 employees) are already connected. As
most  enterprises  are  now  connected  to  the  Internet,  the  usage  of  e-mail  and  web  sites  has
become  nearly  ubiquitous  in  the  world  of  business.  In  this  respect,  no  major  gaps  between
larger enterprises and SMEs exist anymore.

Basic  connectivity  indicators  no  longer  reveal  major  gaps  between  sectors  or  regions.
However, some regional differences still exist. In particular, small enterprises in Italy, Spain,
and  Greece  are  lagging  behind  on  Internet  access,  although  they  are  catching  up.  More
importantly,  the  e-Business  W@tch  data  show  that  there  are  still  significant  differences  as
regards the quality of Internet access. More than a quarter of the small enterprises still connect
to the Internet with an analogue dial-up modem. Large enterprises, on the other hand, are well
equipped  with  fixed  network  connections,  using  higher  bandwidth  and  only  about  half  are
connected to the Internet at less than 2 Mbps. Thus, the percentage of enterprises with speed
of connection higher than 2 Mbps could be an easy-to-monitor benchmark for the success of
infrastructure related policies in the future.

Table 1: SMEs (10-249 employees) and large (250+ employees) enterprises’
take-up rates (2001–2002)

% of Enterprises

Using computers

Using Internet

Making e-commerce
purchases

Making e-commerce
sales

2001

2002

2001

2002

2001

2002

2001

2002

EU

SMEs

LARGE

92

97

92

99

67

81

79

97

25

47

25

37

17

42

10

17

Whereas  the  use  of  basic  ICT  and  access  to  the  Internet  are  reaching  saturation  levels,  the
divide between Northern and Southern Member States with respect to e-commerce activities
still  exists  and  is  even  widening.  According  to  the  Eurostat  2001  and  2002  surveys,
enterprises  in  the  Nordic  Member  States  have  maintained  a  momentum  of  growth.  In

2

3

COM(2001)136  final,  of  13.3.2001,  Communication  on  “Helping  SMEs  to  Go  Digital”,  action  2:  measuring  of
take-up of ICT and e-business
http://www.ebusiness-watch.org/marketwatch

4

                                                
particular,  the  percentage  of  companies  making  e-purchases  has,  in  some  cases,  almost
doubled.  Whereas  in  these  countries  more  than  45  %  of  enterprises  are  buying  online,  only
about 10% of those in Southern Member States are using the Internet for this most simple but
very cost-effective form of e-commerce. Enterprises from the remaining Member States come
closer to the Scandinavian pattern, although with slower growth. The most striking growth is
in Austria, for which figures on e-commerce activity have almost doubled. This clearly shows
that  there  is  still  growth  potential  for  e-commerce  to  be  further  exploited  by  enterprises  in
most Member States.

Although  the  pattern  of  e-commerce  take-up  varies  across  Europe,  the  percentage  of
companies making e-purchases generally exceeds that of those engaging in e-selling activities
by  more  than  2:1.  Moreover,  SMEs  are  using  both  channels  less  than  larger  enterprises,  in
particular for sales purposes. However, it is difficult to judge to what extent the Internet can
be used as an additional distribution channel. In 2002, fewer  enterprises were  selling online
than  in  2001,  indicating  the  difficulties  of  implementing  commercially  viable  business
models. It has  to be  acknowledged that many products are not suitable for  e-commerce  and
that emerging conflicts between different sales channels are sometimes difficult to resolve. As
a consequence, policy makers should be very cautious about setting targets for selling online.
For  online  purchases,  however,  it  should  be  expected  that  virtually  all  enterprises  could
benefit  from  engaging  in  e-commerce  activities,  in  particular  for  maintenance,  repair  and
operation (MRO) goods and services.

individual  companies,  e-marketplaces  bring 

For business-to-business (B2B) transactions, the emergence of e-marketplaces seems to be of
growing importance for both large companies and SMEs. Unlike the traditional e-commerce
sites  of 
together  several  buyers  and
sellers/suppliers. The e-Business W@tch reports that about 5% of European enterprises in the
four largest EU Member States (Germany, France, UK and Italy) used e-marketplaces in 2002
and, in addition, more than 3% plan to do so in 2003. Large enterprises are more likely to use
e-marketplaces, but in many cases SMEs will have to follow. Whereas the overall impact of
e-marketplaces  is  still  relatively  low,  there  are  some  industries,  e.g.  chemicals,  transport
equipment  manufacturing  and  ICT  services,  where  B2B  e-marketplaces  have  clearly  gained
momentum. This indicates the importance of sound sector-specific analysis for the definition
of e-business related policies in favour of SMEs.

The economic pressure for businesses to adapt varies from sector to sector. In some sectors,
such as ICT services, business services, electronics and media  & printing, the percentage of
enterprises buying online is already very high and this type of transaction will soon become
the  norm.  Sector-specific  differences  explain,  to  a  large  extent,  the  different  patterns  of
Member  States with respect to the  take-up of  e-commerce.  Therefore,  the  general  statistical
picture  is  not  sufficiently  informative  about  the  nature  and  significance  of  existing  policy
challenges.  Enterprises  compete  in  different  markets  and  with  different  intensity.  To  be
effective,  e-business  policies  must  address  sector-specific  and  regional  issues  in  a  targeted
manner.

1.2.

From e-commerce to e-business: A new challenge for SMEs

E-commerce  transactions,  such  as  online  selling  and  procuring,  constitute  an  important
element  of  electronic  business.  Until  recently,  statistics  have  focused  on  measuring  and
describing these  new  forms  of  transactions.  In  order  to  identify  relevant  policy  measures  to
enhance the competitiveness of European enterprises, the analysis has to take more account of
how ICT usage contributes to productivity and efficiency gains. In this respect, focusing only
on e-commerce activity is clearly not sufficient.

5

While SMEs, in general, appear to be closing the gap in terms of ICT penetration and Internet
connectivity,  they  still  seem  to  find  it  harder  and  more  costly  than  large  enterprises  to
implement  new  technologies,  due  to  the  proportionately  higher  costs  of  investing  in  human
capital  and  maintaining  IT  infrastructure  and  company  websites.  Statistics  from  the  e-
Business  W@tch suggest  that  the  gap between small  and  large  firms  has  now  moved  to  the
area of more advanced e-business applications. According to these statistics, for instance, less
than 10% of those small enterprises that sell online have fully integrated the ordering process
into  the  internal  business  organisation,  while  a  third  of  the  large  enterprises  have
accomplished this task.

Statistics also show that large enterprises are currently the main users of the more advanced e-
business  solutions  that  underpin  electronic  business  processes.  Nearly  a  third  of  large
enterprises  have  implemented  an  electronic  Customer  Relationship  Management  (CRM)
system, but less than 10% of the small and  not many more of the medium-sized enterprises
have invested in these new ways of doing business electronically.  In addition, 13% of large
enterprises  are  users  of  an  electronic  Supply  Chain  Management  (SCM)  system,  compared
with only 3% of SMEs. It is nonetheless worth asking whether SMEs really need to use such
sophisticated electronic systems and whether there are alternative, less costly ways for them
to integrate business processes electronically.

In  conclusion,  it  seems  that  the  threat  of  a  "digital  divide"  between  larger  and  smaller
enterprises in terms of simple Internet access and usage is no longer the most important policy
issue. The question is rather how far SMEs need to move into e-business, bearing in mind that
the critical  factor  is the extent to  which  e-business  tools  can  enhance  their  competitiveness.
Future policy discussion should therefore focus on how best to help SMEs to transform their
businesses into “e-companies”  rather than  on  how  to  promote e-commerce.  In  promoting  e-
business, due account has to be taken of economic realities, such as the difficulties that SMEs
often experience in identifying and re-organising their internal processes, the higher relative
costs  they  incur  when  investing  in  ICT,  and  problems  in  recruiting  skilled  e-business
personnel and enhancing the e-business skills of their workforce.

1.3.

The need for comprehensive e-business indicators

Policy actions should be based on sound economic analysis and a  clear identification  of  the
challenges  to  be  addressed.  For  this  reason,  all  relevant  statistical  data  should  be  used  in  a
consistent manner in order to present the full picture. The “e-business index”, as included in
the list of eEurope 2005 benchmarking indicators4, aims to assess the readiness of enterprises
to  conduct  business  electronically.  This  index  embodies  a  concept  much  wider  than  e-
commerce.  Here,  e-business  relates  to  both  external  and  internal  company  processes,
encompassing  not  only  external  communication  and  transaction  functions,  but  also
information flows within the company.

The e-business index should be considered as a first attempt to provide a better measure of the
take-up of e-business, based on the availability, reliability and comparability of relevant data.
The objective must be to identify those elements of e-business that have a measurable impact
on  productivity  and  growth  and  are  thus  directly  related  to  the  Lisbon  strategy.  The  first
results of the e-business index will be available in the second half of 2003.

4

Council Resolution on the implementation of the eEurope 2005 Action Plan, 5197/03 (OR.en), 28.01.2003

6

                                                
In  addition,  some  Member  States  have  launched  their  own  initiatives  to  develop  innovative
indicators for “e-readiness” that can be used for defining and benchmarking policies. The UK
Department  for  Trade  and  Industry,  for  example,  has  developed  a  sophisticated  rating  of  e-
business  related  activities  in  the  framework  of  the  "UK  online  for  business"  initiative.  The
rating includes a range of indicators on ICT use and it awards points depending on the degree
of  “sophistication”  with  which  ICT  is  used  within  the  business.  Member  States  are
encouraged  to  follow  this  example  and  to  contribute  to  the  debate  on  defining  appropriate
policies.
– 
indicators 

consequently 

e-business 

targets 

and 

for 

– 

7

2.

A  NEW  APPROACH  FOR  E-BUSINESS  POLICIES  –  THE  NEED  FOR
SETTING QUANTITATIVE TARGETS

In recent years, many e-business policy initiatives have been launched to promote the use of
the Internet by SMEs. Today, new challenges are emerging that require a review of existing
policy initiatives and their re-orientation towards the facilitation of structural change. For this,
clear policy objectives  and, wherever  possible, quantitative targets should be set  in  order  to
allow for greater efficiency and a continuous monitoring of the achieved results.

2.1.

Towards better adapted and more innovative e-business policies for SMEs

The  role  of  public  authorities  in  promoting  e-business  is  mainly  to  ensure  a  favourable  e-
business environment for enterprises. Enterprises benefit most from a reliable, stable and open
business environment, which helps companies to take up e-business practices. An e-business
friendly environment has the effect of lowering market access barriers and the costs and risks
of ICT investment. In particular, SMEs need:

– 

– 

– 

a stable legal and regulatory framework, notably for cross-border trading;

full  liberalisation  of  the  telecommunications  market,  resulting  in  lower  prices  for
Internet access and improving the quality and speed of Internet access;

e-government services, which  reduce  companies' administrative overheads  and thus
create an incentive for enterprises to engage in e-business.

At both European and national levels, many of the necessary steps have been taken to address
these fundamental policy  challenges. The legal  framework for  e-commerce  has been widely
established  and  the  telecommunication  markets  are  being  rapidly  liberalised  across  Europe.
The  eEurope  initiative  provides  a  framework  for  fostering  e-government  services  and
promoting broadband infrastructure and applications.

In addition to these “horizontal” policy initiatives, specific SME policies aiming to promote
the use of ICT and e-business by SMEs are needed to accelerate the full integration of ICT in
business processes in all Member States. As emphasised by the Communication on “Industrial
Policy in an enlarged Europe”5, a key challenge for the EU is to ensure  widespread  take-up
and  efficient  use  of  ICT  in  all  industries  and  services,  including  SMEs,  which  are  the
backbone  of  the  European  economy.  ICT  take-up  and  diffusion  among  SMEs  is  critical  for
the competitiveness of the whole EU economy.

The statistical evidence suggests that the majority of European enterprises is generally aware
of  the  challenges  and  opportunities  resulting  from  the  new  forms  of  doing  business
electronically. In many cases, being aware and getting connected to the Internet were the first
steps taken by enterprises, followed by communicating information to customers and business
partners electronically. The next step now consists of enabling interactive business processes,
including  e-commerce  transactions.  Ultimately,  it  will  be  necessary  to  transform  business
processes  as  a  whole,  in  order  to  automate  the  flow  of  information  and  to  create  virtual
networks  among  enterprises.  But  most  enterprises,  both  large  and  small,  are  still  far  away
from this ultimate aim.

5

COM  (2002)  714  of  11.12.2002:  Communication  from  the  Commission  to  the  Council  and  the  European
Parliament “Industrial Policy in an Enlarged Europe”

8

                                                
E-business policies will have to move up the maturity ladder, too, along with the companies
that constitute the target group. For instance, until recently the main focus of many e-business
policies  for  SMEs  was  to  raise  awareness  of  the  importance  of  getting  connected  to  the
Internet.  Now  that  this  goal  has  been  widely  accomplished  in  many  regions,  SME  policies
will have to  adapt as well. Awareness-raising may still  be  justified  in  specific cases, e.g. to
facilitate  the effective  use  of  e-marketplaces  and  public  e-procurement  by  SMEs,  but  is  not
enough  to  address  the  barriers  and  obstacles  to  use  ICT  in  a  more  productive  manner.  The
message will no longer be "get connected to the Internet", but rather to address the importance
of e-business integration.

Figure 1: From Awareness to Transformation – the e-Maturity Ladder

e-Business Maturity and Adaptation of Policies
e-Business Maturity and Adaptation of Policies

Awareness
Awareness
Awareness
Awareness

Connect
Connect
Connect
Connect

Publish
Publish
Publish
Publish

Interact
Interact
Interact
Interact

Transform
Transform
Transform
Transform

Majority of e-Business activity 
Majority of e-Business activity 
today in most Member States
today in most Member States

Most successful 
Most successful 
current e-business 
current e-business 
policies
policies

Majority of 
Majority of 
near future 
near future 
e-business policies
e-business policies

Allow advanced 
Allow advanced 
businesses to 
businesses to 
collaborate
collaborate

SMEs differ in their “e-maturity” across Member States, regions, and business sectors, as the
statistical  picture  clearly  demonstrates.  Policies  must  be  specific  enough  to  reflect  the
situation  of  the  enterprises  they  are  targeting.  Policy  actions  that  are  adequate  for  regions
characterised by a lower degree of “e-maturity” will most probably not be adequate for more
advanced  regions.  While  the  different  stages  of  development  make  it  difficult  to  design
policies  that  are  applicable  throughout  Europe,  this  provides  a  huge  potential  for  learning
from  good  practices,  for  instance  by  adapting  policy  measures  that  previously  proved  to  be
successful in another Member State or region.

Policy  makers  in  Member  States  and  regions  are  therefore  encouraged  to  liaise  with  their
colleagues  in  other  regions  and  actively  investigate  which  models  can  be  further  leveraged.
For  instance,  e-business  policies  developed  by  the  Nordic  countries  may  soon  become
interesting  for  Southern  ones,  taking  into  account  the  time  lags  in  the  take-up  rates  of  e-
business  across  Europe.  To  stimulate  dialogue  between  Member  States,  the  Commission  is
setting  up  a  “European  E-business  Support  Network  for  SMEs”6.  The  objective  is  to  bring
together  e-business  policy  makers  at  European,  national  and  regional  levels  to  foster  the
exchange  of  experience  and  information  and  to  strengthen  policy  co-ordination,  based  on
commonly agreed priorities for e-business policies. Member States are invited to support this
initiative by promoting the active participation of all relevant policy initiatives at national and
regional level in this network.

2.2.

The need for better targets for e-business policies

Setting specific,  measurable  achievable,  realistic and  timely targets  has  proven  to  be  one  of
the  most  difficult  challenges,  as  demonstrated  by  the  benchmarking  study  on  national  and

6

The European e-business support network for SMEs is part of the eEurope 2005 Action Plan. More information are
available at: http://europa.eu.int/comm/enterprise/ict/policy/e-bus-snfsme.htm

9

                                                
regional e-business policies. The first wave of SME policies to promote the use of ICT and e-
business were mainly based on general targets, such as the "number of SMEs to be connected
to the Internet", the "number of employees to be trained", or the "number of consultancy days
to  be  provided  to  SMEs".  As  policies  move  on  to  promote  more  sophisticated  usage  of  e-
business and eventually the full integration of e-business into the regular business practices,
the  definition  of  e-business  policy  objectives  and  appropriate  quantitative  and  qualitative
targets becomes more difficult but at the same time also more pertinent.

The most advanced e-business policies, as launched in some Member States, confirm the shift
from general promotion of the use of ICTs and e-business tools to helping SMEs to that take
full advantage of ICT to re-engineer, automate and streamline business processes. This often
requires  the  use  of  more  sophisticated  policy  instruments,  such  as  assisting  SMEs  in  the
definition  of  e-business  implementation  plans  or  facilitating  access  to  ICT  solutions  that
respond to specific SME needs. Ideally, also such “second generation” SME policies should
be based on  clear  objectives  and targets  in  order  to  evaluate  their  results  and  to  ensure  that
they meet the needs of SMEs. However, setting targets for them is not a trivial task, given the
complexity  of  the  issue  at  stake  and  the  lack  of  experience  in  the  field  of  promoting  e-
business beyond  Internet connectivity. The targets will have to be a mix of quantitative  and
qualitative  targets  that  seek  to  address  levels  of  sophistication  of  e-business  take-up  rather
than simple connectivity or electronic trading.

In such a dynamic environment as e-business, policies need to remain flexible and therefore
the  objectives  and  targets  may  need  to  be  continuously  adapted.  For  example,  the  lack  of
general  awareness  no  longer  seems  to  be  a  matter  of  great  concern.  Most  SMEs  are  fully
aware that e-business is or will soon become an important part of their business, in particular
in  their  relations  with  large  enterprises.  Consequently,  the  targets  for  awareness  campaigns
and training may have to be redefined, responding to more sophisticated needs such as better
awareness  of  the  opportunities  and  risks  of  participation  in  e-marketplaces  and  focusing  on
managerial training.

The overall e-business environment is changing constantly. Following this development and
taking into account the practical experience of the most advanced Member States, the future
e-business policy challenges for SMEs that need to be addressed are, in particular:

– 

– 

– 

to improve the managerial understanding and skills for e-business in SMEs,

to promote the availability of SME friendly e-business solutions, and

to facilitate effective participation of SMEs in electronic marketplaces  and business
networks.

Not all Member States, accession and candidate countries may face these policy challenges at
the  same  time  and  in  the  same  manner.  The  objective  of  a  common  policy  framework  as
described  further  below  is  to  facilitate  the  re-orientation  of  e-business  policies,  thus
responding to the changing needs of enterprises. Only if the effectiveness of SME policies in
support  of  e-business  is  improved  across  Europe  will  the  Lisbon  strategy  be  properly
supported. According to the  Communication on  the productivity  and  competitiveness  of  the
European economies7, the insufficient usage of ICT in business processes is one of the main
reasons  for  the  EU  under-performance  in  labour  productivity  growth  relative  to  the  United
States. This should stimulate co-ordinated actions in support of the productive use of ICT.

7

COM(2002)  262  final  Communication  from  the  Commission  to  the  Council  and  the  European  Parliament  on
“Productivity: The Key to Competitiveness of European Economies and Enterprises”, Brussels, 21.5.2002

10

                                                
Figure 2: A framework for SME specific e-business policies - Challenges and objectives

Overall challenge
To stimulte and support SMEs in the
adoption of e-business

Challenge 1
To improve managerial
understanding and skills
for e-business

Challenge 2
To improve the
availability of e-business
solutions for SMEs

Objective 1.1.
To improve knowledge
transfer to SMEs

Objective 1.2.
To promote and
disseminate « good e-
business practice »

Objective 1.3.
To enhance e-business
skills for SMEs

Objective 2.1.
To leverage the results of
research one-business
technologies

Objective 2.2.
To promote regional
clusters between ICT
service providers and
SMEs

Objective 2.3.
To promote e-business
interoperability through
national testbeds

Challenge 3
To promote effective
participation of SMEs in
business networks and
electronic marketplaces

Objective 3.1.
To promote
participation  of SMEs in
B2B e-marketplaces

Objective 3.2.
To promote participation
of SMEs in electronic
public procurement

Objective 3.3.
To promote virtual co-
operative SME networks

The  open  method  of  policy  co-ordination,  as  established  by  the  Lisbon  European  Council,
encourages  the  Commission  and  the  Member  States  to  work  together,  learning  from  best
practice and developing better policy in the light of all the relevant circumstances. The results
of  the  first  collective  effort  to  set  a  number  of  quantitative  targets  at  the  most  appropriate
geographic level in enterprise policy are reflected in the “Better Environment for Enterprises"
Communication8.  Some  Member  States  have  also  set  themselves  such  targets  (in  Table  2
below) for policies improving access to ICT and this is to be welcomed. However, many of
these  targets  still  remain  at  general  level  and  are  therefore  not  fully  responding  to  the
changing e-business environment.

8

COM  (2002)  610  Communication  from  the  Commission  to  the  Council  and  the  European  Parliament  on  “Better
Environment for Enterprises”, of 7/11/2002

11

                                                
Table 2: Quantitative targets for policies facilitating access to ICT

INDICATOR

CURRENT POSITION
(YEAR)

MEMBER
STATE
Germany
Germany

Spain

France
France
Ireland

Ireland

SMEs with e-strategy, % of total
Internet users, % of population
Internet  access  of  enterprises  (with  more
than ten employees)

92 % (2001)

2,07 % (2002)

Spain

Access to broadband

SME access to Internet, % of total
Household access to broadband, % of total
Enterprise access to Internet, % of total
Business 
OECD countries
Household access to broadband

telephone  charges,  relative 

65 %
5 %
90 % (2000)
Top 
(2002)
0 % (2000)

quartile

to

Ireland
Netherlands SMEs with on-line transactions, % of total
Portugal
Portugal
Portugal

Portuguese information on the Internet
Number of people with basic ICT skills
Household access to PCs

TARGET (YEAR)

20 % (2005)
70 % (2005)
97 %  (2006),  99 %
(2010)
13,75 % 
22 % (2010)
90 % (2006)
25 % (2006)
95 % (2006)

(2006),

Top decile (2006)

5 % (2006)
66 % (2005)
Times 10 (2006)
2 mio. (2006)
50 % (2003)

In  the  field  of  e-business,  SMEs  now  face  different  problems  from  those  they  faced  some
years  ago.  This  Communication  encourages  Member  States  to  review  their  e-business
policies, and  to adopt, on a voluntary basis,  new  targets at policy  level, as well as  to  refine
specific  policy  initiatives  in  support  of  e-business.  Whereas  the  policy  targets  should  be
included in the Enterprise Policy Scoreboard and regularly monitored according to the agreed
procedures,  more  detailed  performance  criteria,  as  presented  below,  are  mainly  meant  to
improve  the  effectiveness  of  specific  actions.  However,  they  are  important  to  facilitate  the
identification  of  good  governmental  practice  in  this  field  and  to  better  assess  the  practical
impact of e-business policies through ex-post evaluation.

Member States have committed themselves to set, wherever meaningful targets for e-business
policies wherever possible. This is reflected in the Industry Council Conclusions9 inviting the
Member  States  and  the  Commission  to  “intensify  dialogue,  exchange  experience  regularly,
identify  specific  goals  for  e-business  policies  and  share  best  practices”  and  to  “ensure  that
efficient coordination mechanisms exist both at national and European level and set specific
goals for policies and actions in support of e-business in line with eEurope 2005”. Such target
setting has to happen at different levels:

– 

at  political  level  in  form  of  general  targets,  to  facilitate  and  promote  restructuring
towards the  knowledge economy. Germany's  “20%  of  SMEs  to  have  an  e-strategy  by
the year 2005”, is a good example of such policy targets. Obviously the achievement of this
target cannot be directly related to one or more public policy initiatives, but is rather subject
to a variety of factors and market trends. Targets should take due account of the policy
orientations adopted by the Council, the European Parliament, the Committee of the
Regions  and  the  Economic  and  Social  Committee  in  relation  to  the  Go  Digital

9

Conclusions of the Industry Council 9938/02, of 6 June 2002;

12

                                                
initiative and the Commission’s communication on the impact of the e-Economy on
European enterprises10, and

– 

at  an  operational  level,  to  apply,  as  widely  as  possible,  the  SMART  principle
(Specific, Measurable, Attainable, Realistic and Time-related) to targets for specific
SME  policies  in  support  of  e-business.  In  addition,  operational  targets  should  be
directly attributed to specific policy  activities. This distinguishes them clearly  from
policy targets at a general level that are impacted by many different factors. A good
example of SMART targets set at regional level, is the Finnish case “South Karelia
eBusiness for SMEs”.

Table 3: The Finish case “South Karelia eBusiness for SMEs”

Quantitative targets

Dec 2003

Persons participated

of whom are women

New eBusiness – applications launched

eBusiness Plans of SMEs in database

950

300

600

1000

Already reached (by
January 2003)
549

372

380

680

Source: Workshop on “Setting targets for e-business policies”, Athens, 16-17 January 2003

2.3.

The new challenges for e-business policies in favour of SMEs

The general e-business policy framework, as described in figure 2, should facilitate the setting
of  new  and  more  ambitious  targets  for  specific  measures  in  support  of  SMEs  without
prejudging which measures should be taken and which targets are set by Member States and
regions.  This  framework  needs  to  be  adapted  to  different  circumstances  and  further  refined
with  respect  to  the  concrete  targets  to  be  followed.  Thus,  it  serves  mainly  as  a  point  of
reference for further discussions on possible future targets for e-business policies in favour of
SMEs.  In  addition,  the  general  principle  of  facilitating  cross-border  transactions  should  be
fully taken into account.

Challenge 1: To improve managerial understanding and workforce skills for e-business

The challenge of successfully implementing e-business within an enterprise is to integrate all
e-business elements properly within an automated information processing system. For many
firms, and SMEs in particular, this entails overhauling, adapting and optimising their current
business processes, which is clearly a management task. The impact of e-business on different
sectors  of  industry  is  mainly  determined  by  the  visionary  power  of  entrepreneurs  and  their
strategic decisions about how to use technology. The economic impact of ICT and e-business
on enterprises determined not only by the available technology, but more importantly, by how
enterprises are re-organised to harness the opportunities offered by e-business.

10

Communication  on  “The  impact  of  the  eEconomy  on  European  enterprises:  Economic  analysis  and  policy
implications”  [COM(2001)  711];  Communication  on  “Helping  SMEs  to  Go  Digital”  [COM(2001)  136];
Conclusions of the Industry Council 9938/02, of 6 June 2002; European Parliament Report on the Communication
on the impact of the e-Economy on European enterprises [Final A5-0434/2002]; Opinion of the Committee of the
Regions on the Communication “Helping SMEs to Go Digital” [COM-6/032]; Opinion of the Economic and Social
Committee on the Communication “Helping SMEs to Go Digital” [INT/106];

13

                                                
While smaller enterprises usually lack the ICT expertise of larger organisations, they have an
advantage in that they are much more flexible in taking decisions and implementing them. To
exploit  this  advantage  and  facilitate  informed  decisions  on  how  to  integrate  ICT  and  e-
business tools into daily business processes, however, requires a proper understanding by the
management of the issues at stake. This includes knowledge of both the technologies used for
e-business  purposes  and  the  necessary  business  process  re-engineering,  but  also  a  realistic
understanding of the economic impact of the integration of these technologies throughout the
value chain.

Moreover,  SMEs  need  to  continuously  update  the  professional  skills  of  their  employees,  in
order to cope with the new ICT and e-business related issues and the organisational changes
they bring about. SMEs, however, usually find it more difficult to provide continuous training
schemes  for  their  employees,  as  training  costs  and  the  related  opportunity  costs  are  often
considered unaffordable.

E-business policy actions can help by facilitating access to knowledge resources that can offer
practical assistance to firms. This includes, for instance, improving knowledge transfer from
experienced business support organisations to SMEs, providing incentives to SMEs to make
use  of  professional  IT  and  e-business  services,  showcasing  good  practice  examples,  and
helping  SMEs  to  improve  the  managerial  understanding  of  e-business  issues  and  enhance
their employees' e-business skills.

Objective 1.1: To improve knowledge transfer to SMEs through SME support networks

E-business policies for SMEs should preferably be channelled through trusted intermediaries
and  multipliers  such  as  Chambers  of  Commerce,  professional  associations,  SME  support
networks,  Euro  Info  Centres,  competence  centres  or  other  special  institutions.  These
organisations can effectively reach their target groups, because SMEs trust them and they are
efficient in passing messages on market developments.

Usually,  such  SME  support  networks  are  one-stop-shops  for  SMEs,  where  they  can  get
information on practically all areas relevant to their business activities, including information
or  advice  on  legal,  technical  and  market  issues.  Although  ICT  and  e-business  issues  are
playing  an  increasingly  prominent  role  within  their  advisory  activities,  they  can  not  be
expected to replace professional IT and e-business services when it comes to helping SMEs to
define and implement their individual  e-business  strategies.  When  SMEs  reach  this  level  of
maturity,  they  should  understand  that  e-business  may  entail  significant  re-organisation  in
order  to  take  advantage  of  new  technologies  and  render  them  more  productive  and
competitive.

The  ultimate  responsibility  for  undertaking  business  process  re-engineering  remains  with
SMEs  themselves.  However,  e-business  centres  may  help  to  facilitate  the  diffusion  of
advanced  e-business  solutions.  Support  networks  can  also  act  as  intermediaries  between
SMEs and ICT service providers. They may help SMEs to define optimal e-business strategy,
referring them to more specialised consultants if necessary.

To provide this kind of guidance, SME support networks themselves need a good knowledge
of ICT and e-business as well as good organisational skills to use complementary resources or
to guide SMEs to those who know. Support networks fulfil a very important role in advising
SMEs on the issues at stake, the options available and where they can find further support for
more  detailed  information  or  consultation  if  needed.  This  kind  of  advisory  work  should  be
done by e-business instructors or advisers who have been specially trained to understand the

14

needs  of  smaller  firms  in  order  to  provide  practical  assistance.  Continuous  train-the-trainer
schemes are important to ensure that this expertise is continuously available.

Moreover,  some  Member  States  and  regions  are  striving  to  assist  SMEs  in  integrating  e-
business  processes,  by  providing  incentives  to  seek  the  professional  advice  of  IT  and  e-
business  consultants,  of  their  own  choice,  that  help  companies  to  implement  an  e-business
strategy.  The  incentives  to  engage  professional  expertise  range  from  offering  SMEs  a
reimbursement  of  50%  of  the  costs  for  a  business  consultant  (limited  to  a  set  number  of
consulting  days),  to  providing  special  tax  incentives  for  e-business  related  consultation
services. In doing so, however, public policies should be extremely cautious not to interfere
with  the  market,  for  example  by  offering  for  free  business  services  that  are  already
commercially available, or by favouring specific e-business consultants over their competitors
in the market. Competition rules have to be respected.

Activities

(cid:1)  To establish and maintain a well-defined SME support network, taking into account

the sector-specific and regional needs of the SME fabric.

(cid:1)  To promote networking and exchange of experience among e-business competence

Possible
targets

centres at regional, national and European level.

(cid:1)  To launch an e-business related "train-the-trainer" programme within SME support

networks in order to educate e-business instructors.

(cid:1)  To set up a financial incentive mechanism to facilitate the e-business transformation
of  SMEs,  by  enabling  them  to  call  on  the  services  of  professional  IT  e-business
companies.

(cid:1)  Number  or  %  of  SMEs  that  are  expected  to  use  subsidised  professional  business

services.

(cid:1)  Number or % of e-business advisers in SME support networks that are expected to

participate in a train-the-trainer programmes.

(cid:1)  Number  or  %  of  SMEs  that  are  expected  to  contact  the  support  network  and  be

advised and coached on e-business issues.

(cid:1)  Number  or  %  of  SMEs  that  are  expected  to  participate  in  e-business  events,

organised by the support network.

(cid:1)  Number or % of SMEs that are expected to start using e-commerce applications as a

result of consultation with SME support networks.

(cid:1)  Number or % SMEs that are expected to develop an e-business transformation plan

as a result of consultation with SME support networks.

(cid:1)  Number  of  e-business  competence  centres  that  are  expected  to  participate  in  the
European e-business support network for SMEs, with regional or national support.

Objective 1.2: To promote and disseminate good e-business practices among SMEs

For SMEs to be able to take informed decisions on their e-business strategies, it is important
that  they  have  sufficient  and  correct  information  on  the  impact  of  e-business,  including  a
realistic  cost-benefit  analysis  of  the  potential  move  towards  e-business.  The  information
currently available on best practice is biased towards large companies. Many of the e-business
examples  and  case  studies  are  from  large  companies,  if  not  global  players,  and  hence  are
likely  to  be  dismissed  by  small  enterprises  as  irrelevant.  Case  studies  tend  to  have  a  much
higher  recognition  if  they  are  selected  from  the  same  sector,  region  or  country,  and  size  of
enterprises.

In addition, with  e-business  as  with  the take-up of other new technologies, large  companies
are usually frontrunners, i.e. they take more risks, but are also likely to benefit most from the

15

potential  gains.  Risk  considerations  and  insufficient  information  often  prevent  smaller
companies from pursuing e-business strategies that they would otherwise choose. From these
considerations, it can be argued that case studies presenting good practice examples, selected
from smaller  enterprises  and  explaining  how  this  successful  practice  has  been  achieved  can
raise  awareness  and  ideally  trigger  the  willingness  to  follow  the  example.  Examples  should
reflect  recent  findings  on  what  constitutes  successful  integration  of  e-business  applications
and should be as specific as possible in describing how a company has achieved its targets.

The  benchmarking  study  on  national  and  regional  e-business  policies  for  SMEs  has
demonstrated  that  the  promotion  of  good  practice,  e.g.  by  showcasing  at  events,  awards  or
simply  by  distributing  information  material,  continues  to  be  an  important  component  of  e-
business  development  policies.  This  applies  regardless  of  the  level  of  development  of  a
country  or  region  in  the  e-economy.  However,  it  is  suggested  that  closer  co-operation  and
networking  amongst  policy  practitioners,  through  the  cross-border  exchange  of  good  e-
business practices and experiences, would nonetheless be beneficial.

Activities

(cid:1)  To collect e-business good practice examples, selected from SMEs, and disseminate

them widely (through the Internet and in printed form).

(cid:1)  To reinforce cross-border networking and exchange of examples of good practices

among various e-business policies.

(cid:1)  To  organise  e-business  workshops  for  SMEs  where  selected  good  practices  are

presented and where e-business advisers are available.

(cid:1)  Number  of  SMEs that  are  expected to  participate in events  disseminating  good  e-

business practices for SMEs.

(cid:1)  Number of SMEs that are expected to visit web-sites with good e-business practices

Possible
targets

for SMEs.

Objective 1.3: To enhance the e-business skills of SMEs

In general, SMEs face greater difficulties than large companies, both in recruiting ICT and e-
business  specialists  to  cope  with  the  associated  organisational  changes  and  to  train  their
employees to acquire the skills required to implement these changes. Improving the e-skills of
the general workforce is critical to the successful implementation of e-strategies in businesses.
There  are  different  paths  to  this  goal,  but  in  most  cases  a  combination  of  different  ways  of
learning  (or  “blended  learning”),  both  formal  and  informal,  will  be  the  most  effective,
typically consisting of traditional training, self-learning and learning-on-the-job.

Large firms often have established special IT training schemes for continuous training, either
by organising their own programmes or by sending their employees to IT training provided by
training organisations. Smaller firms often cannot provide such opportunities and have to rely
on  learning-on-the-job  and  self-learning  activities  of  their  employees.  So  e-learning
techniques  and  applications,  as  a  complement  to  traditional  ways  of  learning,  may  be
especially  important  to  SMEs  in  managing  the  e-business  skills  requirements  of  their
personnel.

Many  initiatives  and  programmes  have  been  launched  in  all  Member  States  to  address  the
skills  challenge  and  to  improve  the  skill  base  of  the  workforce11.  Additional  policy  actions

11

The  Commission  established  in  2001  the  ICT  Skills  Monitoring  Group  with  e-skills  experts  from  the  Member
States, which analysed the e-skills gap issue and identified and described policy responses at national level. This
work 
Europe”
http://europa.eu.int/comm/enterprise/ict/policy/ict-skills/es-br.pdf

“E-business 

resulted 

report 

skills 

final 

ICT 

into 

and 

on 

in 

a 

16

                                                
could  further  support  life-long-learning  for  SMEs,  e.g.  by  facilitating  the  participation  of
employees of SMEs in special IT and e-business management courses, through vouchers, or
by  supporting  the  development  and  raising  awareness  of  e-learning  technologies  and
applications.  Moreover,  a  dialogue  between  all  relevant  stakeholders  on  the  certification  of
skills  developed  through  informal  and  on-the-job  training  should  be  fostered.  Competition
rules have to be taken duly into account.

Activities

(cid:1)  To encourage SMEs to participate in ICT related continuous training programmes.
(cid:1)  To  increase  awareness  of  the  benefits  that  e-learning  technologies  can  offer  for

SMEs employees.

(cid:1)  To  provide  incentives  to  SMEs  to  start  using  e-learning  methods  to  train  their

employees.

(cid:1)  To  encourage  closer  collaboration  among  universities,  training  institutions,  e-
learning service providers and SMEs, with a view to improving the understanding
of e-learning needs of SMEs and resulting in the development of suitable e-learning
applications.

(cid:1)  To facilitate the continuous development of e-business skills within SMEs through

informal learning, best practice and the sharing of knowledge.

(cid:1)  Number  or  %  of  SMEs  that  are  expected  to  participate  in  e-skills  related  training

activities.

(cid:1)  Number or % of SMEs that are expected to use e-learning methods.

Possible
targets

Challenge 2: To improve the availability of e-business solutions for SMEs

The main challenge for many businesses in the years to come, and particularly for SMEs, will
be to further integrate e-business into their business processes. The ambition is that e-business
will no longer be considered separately from the overall business strategy. Rather, e-business
should become an intrinsic part of the normal business processes, which will increasingly be
supported  by  digital  information  and  communication  technologies  and  carried  out  on
electronic networks.

This  is  a  difficult  task  to  manage,  particularly  for  SMEs,  as  the  costs  of  implementing  and
maintaining  the  required  applications  are  considerable.  Although  the  cost  of  the  initial
investment  for  ICT  equipment  has  dropped  in  recent  years,  maintenance  and  service  costs
remain critical for many SMEs. Uncertainty about the return on the initial investment and the
rising  cost  of  maintenance  services  may  reduce  their  willingness  to  make  the  necessary
investments. In addition, SMEs have to be prepared to outsource ICT services and be ready
for the organisational changes required by e-business. However, such specialised ICT services
may not be available in all regions at reasonable costs.

SMEs have different needs with respect to ICT applications from large companies. They need
cost-effective  solutions  that  can  be  up  and  running  quickly  and  that  are  scalable,
interoperable,  affordable,  and  preferably  based  on  open-source  solutions.  Although  ICT
application  providers  usually  offer  simpler  modules  of  their  solutions  for  smaller  firms  that
require  less  complex  and  industry-specific  functionalities  from  their  IT  solutions,  the  cost
barrier  as  well  as  the  organisational  challenges  to  implement  these  solutions  are  still
significant.

17

Objective 2.1: To better leverage the results of research on e-business technologies

Many SMEs face a dilemma: implementing e-business management software should be quick
and easy to  learn, but at the same time must  be  affordable  enough  to  represent  a  justifiable
investment  today.  The  question  is  whether  there  will  be  sufficient  affordable  solutions  for
SMEs 
that  meet  common  business  needs,  such  as  customer/supplier  relationships
management,  accounting,  reporting  and  logistics,  that  are  interoperable  with  the  e-business
solutions  of  suppliers  and  clients.  These  IT  solutions  need  to  be  secure,  trustworthy  and
interoperable and also respect the legal framework under which enterprises are operating.

While policy has only  a  limited leverage on  the  kind of  IT solutions offered by  the market,
research may help to stimulate the development of SME-specific modules by developing user
friendly,  affordable  and  interoperable  technical  solutions  for  SMEs.  SMEs  can  benefit  in
particular through their participation as technology users in e-business research programmes,
as  they  have  the  opportunity  to  collaborate  with  large  ICT  firms  in  order  to  define  user
requirements,  test  technologies  developed  and  fully  exploit  them  in  their  real  business
environments.

The  European  Community's  Sixth  Framework  Programme  (FP6)  for  research,  technological
development  and  demonstration  activities  attaches  great  importance  to  the  participation  of
small  and  medium-sized  enterprises.  At  least  15%  of  the  budget  of  the  seven  Priority
Thematic  Areas  of  the  “Integrating  and  Strengthening”  Specific  Programme  (EUR  1,700
million) will be dedicated to SMEs. A further EUR 430 million will be allocated to Horizontal
Research Activities involving SMEs. This means a total of almost EUR 2,200 million over the
next  four  years,  representing  the  largest  financial  instrument  supporting  research  and
innovation for SMEs in the world.

Another part of the budget of FP6 will be devoted to support the development of open source
software and interoperable e-business solutions. This activity should improve the economics
of implementing e-business solutions and lower barriers to entry. SMEs should be the primary
beneficiaries  of  such  open  and  interoperable  solutions,  which  will  also  facilitate  the
integration of SMEs within e-business networks and electronic exchanges.

The positive example set by the European Community’s Sixth Framework Programme to give
high priority to the development of SME friendly ICT solutions could be further enhanced by
research  programmes  of  the  Member  States.  However,  research  results  have  to  be  better
disseminated  to  SMEs.  To  this  end,  better  co-operation  between  national  and  European
research  programmes,  on  the  one  hand,  and  SME  support  networks  on  the  other,  should  be
encouraged to better bridge the gap between science and business.

Activities

(cid:1)  To  launch  RTD  projects  that  address  the  use  of  e-business  solutions  for  SMEs  and  SME

intermediate organisations.

(cid:1)  To  increase  the  take-up  of  results  from  RTD  projects  by  developing,  inter  alia,  ,  specific
knowledge  transfer  and  training  mechanisms  and  schemes  in  order  to  enable  an  SMEs
workforce to use/exploit ICT technologies in a quick and cost-effective manner.

(cid:1)  To activate existing SME support networks and intermediaries which would support transfer
of  results  (technology  and  knowledge)  from  RTD  projects  by  widely  disseminating  them
through best practice and targeted training actions.

(cid:1)  Number or % of SMEs that are expected to participate as users in RTD projects.
(cid:1)  Number or % of SMEs (of those who have participated in RTD projects) that are expected to
use  the  results  of  RTD  projects  in  their  real  business  environment,  after  the  demonstration
phase would have ended.

Possible
targets

18

Objective 2.2: To promote regional clusters between ICT service providers and SMEs

The ICT supply sector has a crucial role to play in helping SMEs to go digital. Most European
SMEs  use  local  ICT  suppliers.  However,  there  is  evidence  that  ICT  providers  often  fail  to
meet  the  specific  requirements  of  smaller  firms.  This  is  due  to  a  lack  of  understanding  by
many SMEs of what e-business can deliver and how to realise those benefits, and a failure of
ICT  providers  to  understand  the  e-business  needs  and  expectations  of  SMEs,  particularly
those working in specialised sectors.

In  some  European  regions,  effective  mechanisms  have  been  established  to  bring  together
SMEs  and  ICT  service  providers  to  stimulate  networking  and  facilitate  a  constructive
dialogue between them. Based upon this positive experience, further efforts should be made
to  promote  regional  clusters  between  SMEs  and  ICT  service  providers.  Competition  rules
have to be taken duly into account.

Activities

Possible
targets

(cid:1)  To  promote  closer  collaboration  among  ICT  service  providers,  SMEs  and  SME
intermediary organisations, with a view to stimulating networking and the exchange
of knowledge and experience with regard to the development of e-business solutions
adapted for SMEs.

(cid:1)  Number  of  SMEs  and  ICT  service  providers  that  are  expected  to  participate  in

regional or local networking events.

(cid:1)  Number  of  SMEs  that  are  expected  to  have  a  better  understanding  of  the

opportunities of ICT, as a result of the networking events.

(cid:1)  Number of ICT providers that are expected to offer customised e-business solutions,

as a result of the networking events.

Objective 2.3: To promote e-business interoperability through national test-beds

The  goal  of  truly  automated  supply  and  demand  chains  can  be  attained  only  with  the
participation of SMEs. However, most SMEs may not have the means to follow technological
developments, let alone to decide to test expensive and often experimental technical solutions
without proof of concept and clear indications of return on investment. Enterprises, especially
SMEs, need a business roadmap and ready-to-use examples of practical e-business solutions.

A national test-bed or, even better, a network of national test-beds for e-business, preferably
based  on  open  source  software  solutions,  would  provide  for  a  practical  venue  for  SMEs  to
develop  their  e-business  processes.  The  aim  should  be  to  create  communities  with  fully
operational e-business networks of public and private business, resulting in a model for other
communities.  Successfully  carried  out  and  documented  for  learning  purposes,  such  an
initiative would increase confidence in e-business and provide a  roadmap to be followed by
others.

Only  a  holistic  approach,  involving  all  the  major  building  blocs  of  e-business,  can
demonstrate the full benefits of e-business. To implement such an ambitious task is primarily
the  responsibility  of  the  private  sector,  with  support  from  business  organisations  and
standardisation bodies. However, national and regional authorities can play an important role
in bringing together the different economic players and stimulating  consensus building.  The
cross-border dimension of electronic transactions should be taken into account, so as to avoid
a fragmentation  of  markets,  stemming  from  different  national  interoperability  schemes.  The
different interoperability test-beds should work closely together at European level, in order to
exchange  experience  and  to  shape  common  business  practices  to  be  followed,  as  widely  as
possible, by both the private sector and public authorities.

19

Activities

(cid:1)  To  select  regional  or  national  test-beds,  based  on  open  source  software,  for
the purpose of creating large scale e-business communities, serving as a proof
of concept for enterprises and public authorities to utilize.

(cid:1)  To  develop  a  community  model  for  e-business,  comprised  of  the  respective

building blocs required.

(cid:1)  To  develop  an  assessment  methodology,  enabling  business  communities  to
evaluate their e-business maturity and to decide upon necessary actions to be
taken in order to become an e-business community.

(cid:1)  Number  or  %  of  enterprises  that  are  expected  to  participate  in  regional  or

national interoperability test-beds.

(cid:1)  Number or % of enterprises that are expected to use e-signatures, make online

tax declarations or are engaged in e-procurement.

Possible
targets

Challenge 3: To facilitate effective participation of SMEs in e-business networks

Conducting  electronic  transactions  via  specialised  e-marketplaces  for  businesses  -  the  so-
called B2B e-marketplaces - may represent an efficient and cost-effective way to trade goods
and  services,  both  within  and  across  national  borders.  By  creating  on-line  communities  of
buyers  and  sellers,  e-marketplaces  can  facilitate  transactions  over  large  geographical  areas
and  with  previously  unknown  business  partners,  thus  generating  cost  savings  through
increased market transparency and a more efficient transaction process. Many SMEs are still
sceptical about using e-marketplaces and participating in virtual collaborative networks.

However,  in  some  cases  SMEs  may  not  have  the  choice  between  participation  and  non-
participation  as  large  enterprises  are  conducting  more  and  more  transactions  exclusively  by
electronic means. Public authorities, too are increasingly using electronic means to purchase
goods and services. Therefore, SMEs have to be both mentally and technologically prepared
to participate in e-marketplaces, including electronic auctions, and to take advantage of better
electronic  networking.  SME  policies  can  help  by  raising  awareness  and  providing  better
information about how to use Internet tools in the most effective manner, taking due account
of the economic, technical and legal barriers for SMEs.

Objective 3.1: To promote participation of SMEs in B2B e-marketplaces

B2B  e-marketplaces can offer important opportunities  for SMEs  to access new markets and
find  new  business  partners.  In  particular,  the  use  of  e-marketplaces  for  online  procurement
may soon become the norm for many products and services. In some industry sectors, where
large companies are setting up e-marketplaces to procure goods and services, SMEs and their
suppliers may well be forced to participate in them in order to stay in business.

In  general,  SMEs  are  using  Internet  platforms  operated  by  large  companies  or  independent
operators.  As  a  result,  they  need  neutral  and  unbiased  information  about  existing  B2B  e-
marketplaces, providing reliable data on their economic importance and the relevant trading
rules, in order to decide what is the most advantageous solution for them. Furthermore, trust
and confidence in electronic transactions are of major importance for facilitating participation
of SMEs in B2B e-marketplaces. Reverse  auctions have been identified  as a matter of  great
concern for many SMEs12.

12

Commission staff working paper on “B2B Internet trading platforms: Opportunities and barriers for SMEs – A first
assessment” [SEC(32002) 1217]

20

                                                
Self-regulation has to play a major role in promoting fair and reliable business practices in the
new electronic environment. Developing codes of conduct is, by definition, the responsibility
of  market  players.  They  should  be  inclusive,  reflect  consensus  among  all  stakeholders,  and
should preferably be developed at European level, thus contributing to the completion of the
Internal Market. E-marketplaces have the potential to facilitate cross-border transactions, thus
further  stimulating  the  Internal  Market.  To  facilitate  cross-border  electronic  transactions,
national business associations and e-business support networks should raise awareness about
the legal rules that apply, taking due account of existing European initiatives in this field.

Activities

(cid:1)  To promote awareness campaigns and training specifically focused on the benefits and risks

for the participation of SMEs in B2B e-marketplaces;

(cid:1)  To  raise  awareness  on  B2B  e-marketplaces  by  providing  neutral  information  on  B2B  e-
marketplaces,  business  partners,  business  cases,  legal  rules  and  codes  of  conduct  on  fair
business practices in B2B e-marketplaces;

(cid:1)  To  encourage  the  development  of  feedback  mechanisms,  such  as  “hotlines”  to  allow  for
complaints  by  SMEs  on  unfair  behaviour  in  B2B  e-marketplaces,  and  the  provision  of
appropriate assistance to deal with such complaints;

(cid:1)  To facilitate cross border electronic transactions, by providing information to SMEs on legal

rules related to e-business, in all Member States.

(cid:1)  Number  of  SMEs  that  are  expected  to  participate  in  targeted  awareness  campaigns  and

training on B2B e-marketplaces.

(cid:1)  Number of  SMEs  that  are  expected  to  use  information  services  on  B2B  e-marketplaces,  as

provided by publicly funded e-business initiatives.

(cid:1)  Number  of  national/regional  e-business  initiatives  that  are  expected  to  provide  links  to
European  initiatives  on  information  services  for  e-business,  such  as  the  e-business  legal
portal – ELEAS project13.

Possible
targets

Objective 3.2: To promote participation of SMEs in public electronic procurement

Many Member States have already started applying electronic public procurement techniques
at national level. The legislative package of public procurement directives, to be adopted later
this  year,  will  set  clear  rules  at  European  level  for  carrying  out  procurement  procedures
electronically. This will give new impetus to electronic public procurement across Europe.

Electronic public procurement systems will have a profound impact both on demand and on
the  way  procurement  is  carried  out  by  the  public  sector.  Electronic  tendering,  electronic
marketplaces  and  auctions  are  features  that  will  also  increasingly  be  employed  by  public
authorities,  as  they  become  more  extensively  engaged  in  e-business  activities.  Potentially,
electronic  public  procurement  offers  increased  opportunities  for  SMEs  at  regional,  national
and European levels. SMEs traditionally supplying the public sector or interested in entering
this market will have to adapt to this new environment and learn how to use the new tools. If
they  are  not  familiar  with  the  new  procedures  and  the  technical  infrastructure  required  to
enable  them  to  submit  their  offers,  they  risk  being  excluded  from  public  procurement
opportunities.

Public  policies  have  an  important  role  to  play.  Firstly,  by  setting  up  schemes  that  are
transparent,  reliable  and  effective  and  do  not  discriminate  against  SMEs.  Secondly,  by
launching specific awareness and training campaigns to provide information and guidance, in
particular to SMEs, so that they can  effectively participate in such e-procurement  activities.
Particular  attention  should  be  given  to  industries  that  have  traditionally  lagged  behind  in  e-
skills and may therefore find it more difficult to adjust to the new environment. Equally, it is

13

http://europa.eu.int/comm/enterprise/ict/policy/legal-portal/eleas-proposal.pdf

21

                                                
important  that  e-procurement  systems  are  designed  in  such  a  way  as  to  enable  businesses
progressively to adapt to the new environment.

Activities

Possible
targets

(cid:1)  To launch specific awareness campaigns and establish dialogue  with  SMEs,  with a view  to
implementing  the  forthcoming  legal  framework  for  e-procurement,  better  defining  the
technical  infrastructure  required  for  SMEs  participation  in  public  e-procurement  and
maximising opportunities and benefits from the digitisation of the procurement process.
(cid:1)  To launch specific training programmes, in collaboration  with business organisations, SME
associations,  SME  support  networks,  etc.  to  support  SME  efforts  to  become  familiar  with
electronic public procurement and participate actively in new electronic business.

(cid:1)  Number  or  %  of  SMEs  to  be  expected  to  be  trained  in  electronic  public  procurement

technologies and systems.

(cid:1)  Number or % of SMEs to be expected to be familiar with rules for public e-procurement.
(cid:1)  % of SMEs share in electronic public procurement

Objective 3.3: To promote virtual collaborative SME networks

E-business  applications  provide  SMEs  with  new  opportunities  to  set  up  collaborative
networks. In some sectors, SMEs specialised in different parts  of the production chain  have
started  establishing  collaborative  networks,  thereby  achieving  overall  cost  savings,  through
economies of scale and increased efficiency.

ICT-supported collaborative networks  will  play  an  important  role  in  future  business  models
for  many  SMEs,  providing  new  opportunities  to  stay  competitive.  SME  collaborative
networks can act as virtual business entities in e-marketplaces, both for procuring and selling
purposes. They can also be very effective in targeting electronic public procurement markets.
Examples  of  co-operative  networks  can  be  found,  for  instance,  in  the  wood  processing
industry  in  Northern  Italy  and  Austria  where  different  businesses  have  joined  networks  to
market their services together.

Many  of  these  collaborative  networks  are  regional  in  character  and  based  on  close  co-
operation  among  former  competitors,  in  order  to  operate  as  a  new  unit  on  the  market.  This
requires  SMEs  to  overcome  their  inherent  resistance  to  sharing  knowledge  with  others.
Furthermore, it has always been part of the business strategy, particularly in traditional trade
and  craftsmanship,  to  keep  the  entire  production  process  in-house,  including  components,
rather than outsourcing parts of it. This can be a barrier to collaborative networks, which are
usually established to enable  the  specialisation  of  small  businesses.  Thus smaller firms may
experience a clash between the more traditional entrepreneurial self-understanding and what
constitutes their role in an e-business network.

Policy  actions  can  provide  support  for  the  establishment  of  e-business  networks  for  SMEs,
e.g. by financially supporting pilot projects through which smaller enterprises can test how to
benefit from a collaborative network without taking too much risk. However, this should not
result in intervention in the market, by favouring one business community over another, or by
providing indirect subsidies to certain e-marketplaces. Competition rules have to be taken into
account.

Activities

Possible
targets

(cid:1)  To promote collaborative platforms for SMEs for online buying and selling.
(cid:1)  To launch pilots for collaborative networks for SMEs.
(cid:1)  Number of SMEs to be expected to use collaborative SME platforms to buy and sell online,
due to public support.
(cid:1)  Number of SMEs to be expected to participate in pilot actions on collaborative networks for
SMEs.

22

3.

CONCLUSIONS

This  communication  addresses  the  need  to  re-orient  e-business  policies  to  new  challenges.
Member  States  and  regions  are  invited  to  review  their  e-business  strategies  in  support  of
SMEs, by setting new and more innovative targets in this field.

– 

– 

– 

First,  at  political  level,  the  quantitative  targets  related  to  ICT  and  e-business,
resulting from the open consultation process and published in the Enterprise Policy
Scoreboard,  should  be  further  completed  and,  where  necessary,  reviewed  by  the
Member States. General references to SME access to the  Internet should,  wherever
possible, be further qualified in order to better reflect the need to promote the use of
more  advanced  infrastructure  and  a  more  productive  use  of  ICT  by  European
enterprises.  Key  challenges  to  be  further  addressed  are  the  improvement  of
managerial  skills  for  e-business,  the  availability  of  SME-friendly  e-business
solutions  and  a  better  use  of  advanced  e-business  applications  by  SMEs.  The
Member  States  are  therefore  invited  to  review  their  policy  targets  for  ICT  and  e-
business, building upon the elements of the “e-business index”, as included in the list
of eEurope 2005 benchmarking indicators.

Secondly,  at  operational  level,  specific  e-business  initiatives  in  favour  of  SMEs
should  be  based,  wherever  possible,  on  clear  quantitative  or  qualitative  targets  that
serve  to  measure  their  practical  impact.  To  make  them  effective,  Member  States
should  monitor  such  actions  closely  and  regularly  assess  them  against  pre-defined
performance  indicators.  As  the  e-business  environment  is  constantly  changing,  e-
business  policies  for  SMEs  need  to  adapt  as  well  in  order  to  address  the  new
challenges adequately.

Thirdly, the efficiency of e-business policies would benefit from a better exchange of
experience  among  Member  States  and  regions.  The  European  E-business  Support
Network  for  SMEs,  established  by  the  Commission  as  part  of  the  eEurope  2005
Action  Plan,  will  provide  a  platform  to  bring  together  regional,  national  and
European  e-business  initiatives,  with  a  view  to  facilitating  exchange  of  experience
and  agreeing,  on  a  voluntary  basis,  future  policy  priorities  and  targets.  Member
States are invited to fully support this initiative, by sharing information and expertise
in the field of e-business policies.

This  communication  should  be  regarded  as  a  further  step  to  stimulate  progress  towards  the
ambitious  goal,  set  by  the  March  2000  Lisbon  European  Council,  of  making  Europe  the
world’s most competitive and dynamic knowledge-based economy by the end of the decade.
In order to attain this goal, further efforts have to be made in all Member States to enhance
the  efficiency  of  e-business  policies  in  favour  of  SMEs.  The  setting  of  clear  and  ambitious
targets  plays  a  crucial  role  in  creating  the  right  framework  conditions  to  enable  European
enterprises to enhance their competitiveness.

As a follow-up to this communication, the Commission  will  prepare,  by  the  end  of  2004,  a
report  on the progress made in support  of e-business for SMEs.  In  particular, it  will  review
which  targets  have  been  set  by  the  Member  States  to  further  promote  the  take-up  of  e-
business  and  the  progress  made  in  this  respect.  Furthermore,  it  is  envisaged  to  analyse  the
extent to which successful e-business strategies have been further leveraged, as a result of the
collaboration within the European E-Business Support Network.

23

1. THE EUROSTAT “COMMUNITY ENTERPRISE SURVEYS ON ICT USAGE”14

ANNEX: The statistical picture

Table 1: SMEs (10-249 employees) and large (250+ employees) enterprises’ adoption
rates (2001–2002)

% of Enterprises

Using computers

Use Internet (have web
access)

Making e-commerce
purchases (see remark 2)

Making e-commerce
sales (see remark 2)

2001

2002

2001

2002

2001

2002

2001

2002

B

DK

D

EL

E

F

IRL

I

L

NL

A

SMEs

LARGE

SMEs

LARGE

SMEs

LARGE

SMEs

LARGE

SMEs

95 a,b

100 a,b

96 c

96 c

84

98

91

LARGE

100

SMEs

LARGE

SMEs

LARGE

SMEs

LARGE

SMEs

LARGE

SMEs

LARGE

SMEs

LARGE

86 a

99 a

90

99

93 e

94 f

92

100

NA

NA

98 a

100 a

94 a

100 a

89

99

95

100

NA

NA

88 a

97 a

95a

100 a

97

97

NA

NA

93

100

86 a,b

99 a,b

67 c

77 c

50

84

66

97

66 a

94 a

54

70

77 e

88 f

76

91

NA

NA

95 a

100 a

83 a

98 a

68

96

82

98

NA

NA

64 a

96 a

74 a

95 a

78

96

NA

NA

84

100

36 a,b

66 a,b

35 c

51 c

5

8

9

20

10 a

21 a

18

28

38 e

47 f

14

30

NA

NA

45 a

80 a

38 a

40 a

12

26

6

15

NA

NA

10 a

60 a

7 a

14 a

23

22

NA

NA

31

56

NA

NA

24 a

36 a

16 a

17 a

10

16

2

7

NA

NA

9 a

32 a

4 a

7 a

12

12

NA

NA

21

29

27 a,b

46 a,b

28 c

48 c

6

13

6

24

3 a

8 a

8

27

36 e

39 f

11

26

14

a
b
c
d
e
f
g
h

With the active support of the Commission, Eurostat launched in 2001 a pilot survey to measure e-commerce and
ICT  usage  by  European  enterprises.  This  survey  was  conducted  in  co-operation  with  the  National  Statistical
Institutes of EU Member States and in co-ordination with the relevant work of the OECD. In the  context  of  this
survey,  more  than  100,000  European  enterprises  in  13  Member  States  (and  Norway)  were  contacted  and  the
response rate was close to 50% The survey, has been repeated in 2002 in all 15 Member States (with a sample size
exceeding 135.000 enterprises) and will be regularly conducted in the next years.
= excluding NACE J (financial sector);
= including NACE F (construction) and 93 (other service activities);
= only NACE G (commerce) and H (hotels and restaurants);
= including NACE F (construction sector);
= only small enterprises (10-49);
= medium and large enterprises (50+);
= average of all available countries, weighted by the number of SMEs;
= average of all available countries, weighted by the number of 250+ enterprises.

24

                                                
% of Enterprises

Using computers

Use Internet (have web
access)

Making e-commerce
purchases (see remark 2)

Making e-commerce
sales (see remark 2)

2001

2002

2001

2002

2001

2002

2001

2002

P

FIN

S

UK

EU

SMEs

LARGE

SMEs

LARGE

SMEs

LARGE

SMEs

89

99

98 a,d

100 a,d

96

100

92 d

LARGE

100 d

SMEs

LARGE

92

97

NA

NA

99 a

100 a

99

100

88

98

92 g

99 h

72

94

91 a,d

97 a,d

90

99

62 d

90 d

67

81

NA

NA

96 a

100 a

95

100

71

94

79 g

97 h

11

21

34 a,d

45 a,d

31

37

32 d

50 d

25

47

NA

NA

51 a

70 a

58

83

28

36

25 g

37 h

6

19

13 a,d

26 a,d

11

19

16 d

35 d

17

42

NA

NA

16 a

27 a

13

27

11

17

10 g

17 h

Source:  European  Community  pilot  surveys  on  e-commerce  and  ICT  usage  by  enterprises  2001.  Community  enterprise
survey on ICT usage 2002 (data from Eurostat on 04.03.2003).

Remarks:

1. Sectors NACE DGHIJK, unless otherwise indicated (D-Manufacturing, G - Commerce, H - Hotels and restaurants, I -
Transport, storage and communication, J - Financial sector, K - Business services).
In 2001: Sector H (hotels and restaurants) = NACE 55.1 … 55.5. (55.1 = hotels; 55.2 = camping sites and other provision of
short-stay accommodation, 55.3 = restaurants, 55.4 = bars, 55.5 = canteens and catering).
In 2002: Sector H (hotels and restaurants) = NACE 55.1 … 55.2 (55.1 = hotels and motels, with restaurant; 55.2 = camping
sites and other provision of short-stay accommodation).
In 2001: Sector J (financial sector) = NACE 65 …67 (65 = financial intermediation, except insurance and pension funding,
66 = insurance and pension funding, except compulsory social security, 67 = activities auxiliary to financial intermediation).
In 2002: Sector J (financial sector) = NACE 67 (activities auxiliary to financial intermediation).
2. In 2001: Sales/purchases via Internet or other networks. In 2002: Sales/purchases via Internet only due to changes in the
survey questionnaire between the two years
3. Percentages are enterprise- weighted - i.e. "...% of enterprises …"
4. If for some period or country data is not available, the cell is left empty – NA: Not available YET.

25

2. THE E-BUSINESS W@TCH SURVEY AND SCOREBOARD

15

Chart 1: ICT Infrastructure

1.a

1.c

15

Use computers 
(% of enterprises)

0

20

40

60

80

100

Have internet access 
(% of enterprises)

0

20

40

60

80

100

0-49

50-249

250+

94

99

100

0-49

50-249

250+

1.b

83

96

99

Connected with <2Mbps 
(% of enterprises with access)

Have a Local Area Network 
(% of enterprises)

0

20

40

60

80

100

0

20

40

60

80

100

0-49

50-249

72

66

250+

49

0-49

43

50-249

250+

1.d

80

89

The Commission launched in late 2001 the European e-Business Market Watch (the e-Business W@tch) to monitor
and  analyse  the  up-take  of  electronic  business  across  different  sectors  of  the  European  economy  and  to  provide
sound  economic  analysis  in  order  to  improve  the  understanding  of  e-business  impacts  at  the  sectoral  level.  The
results  of  the  e-Business  W@tch  are  presented  regularly  in  quarterly  reports  and  summarised  in  two  synthesis
reports in a Scoreboard of e-business indicators and in the relevant web-site: www.ebusiness-watch.org

26

                                                
Have a Wide Area Network 
(% of enterprises)

Have an intranet
(% of enterprises)

0

20

40

60

80

100

0

20

40

60

80

100

0-49

9

0-49

29

50-249

30

50-249

56

250+

60

250+

75

1.e

1.f

Source: e-Business W@tch (data are based on a survey of 9,264 enterprises, reporting period June/July 2002)
Cf. http://www.ebusiness-watch.org

27

Chart 2: E-Commerce Indicators

Have a website 
(% of enterprises)

Sell online 
(% of enterprises)

0

20

40

60

80

100

0

20

40

60

80

100

0-49

52

0-49

13

50-249

250+

2.a

78

50-249

14

88

250+

22

Online sales >10% of total 
(% of enterprises selling online)

0

20

40

60

80

100

0-49

30

50-249

25

250+

28

2.c

2.b

2.d

Use secure server (SSL) 
for selling online 
(% of enterprises selling online)
40

60

20

80

0

100

0-49

50-249

250+

44

48

72

Purchase online 
(% of enterprises)

Online purchases >10% of total
(% of enterprises purchasing online)

0

20

40

60

80

100

0

20

40

60

80

100

0-49

34

0-49

38

50-249

250+

2.e

48

49

50-249

26

250+

23

2.f

Source: e-Business W@tch (data are based on a survey of 9,264 enterprises, reporting period June/July 2002)
Cf. http://www.ebusiness-watch.org

28

Chart 3: E-Business Integration Indicators

Online sales integrated with 
backend system 
(% of enterprises selling online)

0

20

40

60

80

100

Use a CRM solution 
(% of enterprises)

0

20

40

60

80

100

0-49

9

50-249

17

250+

33

3.a

0-49

7

50-249

13

250+

31

3.b

Online technologies for sharing 
documents / collaborat. work
(% of enterprises)

Online technologies to track 
working hours / prod. time
(% of enterprises)

0

20

40

60

80

100

0

20

40

60

80

100

0-49

28

0-49

9

50-249

49

50-249

29

250+

65

250+

45

3.c

3.d

Online collab. with business 
partners for designing products 
(% of enterprises)

0

20

40

60

80

100

Use e-learning tools 
(% of enterprises)

0

20

40

60

80

100

0-49

13

50-249

18

250+

26

3.e

0-49

12

50-249

15

250+

27

3.f

Source: e-Business W@tch (data are based on a survey of 9,264 enterprises, reporting period June/July 2002)
Cf. http://www.ebusiness-watch.org

29

Chart 4: Participation in B2B e-marketplaces

1) Food, beverages and tobacco

2) Publishing, printing & audiovisual services

3) Chemical industries

4) Metal products

5) Machinery and equipment

6) Electrical machinery and electronics

7) Transport equipment manufacturing

8) Retail

9) Tourism

10) Financial sector

11) Insurance and pension funding services

12) Real estate activities

13) Business services

14) Telecommunications and computer services

15) Health and social services

Total (EU4)

0

10

20

30

40

50

60

70

80

90

100

trade on e-marketplaces

plan to trade on e-marketplaces

Source: e-Business W@tch (data are based on the results of the survey conducted in June-July 2002) - Computational base:
all enterprises (EU-4, employment weighted)
Cf. http://www.ebusiness-watch.org

Chart 5: Size of IT and web department (staff per 1000 employees)

No. of employees mainly occupied with
maintenance of IT and networks
(per 1000 employees)

No. of employees mainly occupied with
maintenance of company web site
(per 1000 employees)

0 – 49 employees

50 – 249 employees

250+ employees

Total (EU-4)

124,4

40,7

20,3

123,4

69,7

10,8

2,6

68,7

Data are EU-4 totals, comprising Germany, France, Italy and the UK. The total number of interviews (= N for "all enterprises") carried out
in the EU-4 was 5917. In this table, figures are presented as enterprise-weighted data.

Source: e-Business W@tch (e-Business Survey 2002)

30

Chart 6: The IT skills gap is mostly felt by SMEs

% of enterprises that

Have recruited or tried to
recruit specialised IT staff
in the past 12 months

(of those) Have experienced
great difficulties

(of those) Have experienced some
difficulties

0 – 49 employees

50 – 249 employees

250+ employees

Total (EU-4)

11.6

27.5

50.2

29.3

21.8

13.5

12.4

14.4

23.4

32.1

37.0

34.3

Data are EU-4 totals, comprising Germany, France, Italy and the UK. Total number of interviews (= N for "all enterprises") in the EU-4 was
5917.

Data are employment-weighted – i.e. should be read as ‘enterprises comprising …% of employees’).

Source: e-Business W@tch (e-Business Survey 2002)

31