SMALL businesses can exploit a competitive edge by using technologies such as high-speed internet access, wireless connectivity and multifunction devices, and using technology has a clear correlation with a company's level of competitiveness, says the Small and Medium Enterprises (SME) Survey 2007.

"Entrepreneurs who take advantage of high-speed internet connectivity, mobile solutions including Wi-Fi, multifunction devices and the services of specialist software and hardware companies tend to be more competitive," says researcher Arthur Goldstuck.

Goldstuck says he is alarmed that 9% of SMEs have no internet access at all, which restricts the reach of their businesses.

The most competitive small businesses are using high-speed ADSL connections and upgrading to that option had cut their communications costs and been a major boost to competitiveness.

Of the businesses that use voice over internet protocol (VoIP) to carry voice calls over internet connections, 49% see themselves as highly competitive as against 42% of those that don't use VoIP.

"This is indicative that the more sophisticated user of technology tends to regard his business as more competitive."

Companies that make use of hi-tech training, advice on website development and technology consulting services tend to regard themselves as very competitive.

Yet only 28% of SMEs actually use these services, as many believe they don't have the time or cannot justify the investment.

Danny de Beer, a business development director at Fujitsu Siemens Computers, says SMEs that call on expert advice gain a clear benefit from it. However, many SMEs are reluctant to use external assistance even if it is free, he says.

Fujitsu Siemens Computers often runs free IT training courses, yet find it difficult to get a good attendance, De Beer says.

He makes the important point that buying IT is one thing but applying it well is another.

"Perhaps because SME owners rely on their own resources, many tend to believe they can do computing on their own."

That could be a matter of trust as much as a matter of money, with many SMEs not knowing where to find a reseller with the technical expertise and an understanding of their business needs that would provide them with value for money, he says.

Source: Business Day (Johannesburg)