Pieter Laubscher 14 November 2005 Business Surveys in South Africa: testing the ground for Internet-based surveys keeping the impact on response rates in mind Pieter Laubscher 14 November 2005 Joint EC-OECD Workshop on International Development of Business and Consumer Tendency Surveys

Presentation outline Introduction The BER panel of respondents Sectors Size groups Regions The special BER survey: background details Question1: the current mode of response Question2: the preferred mode of response Question3: access to the Internet Conclusions

Introduction The Internet medium & BTS / CTS Obvious advantages: cost & efficiency Constraints: user “resistance” & access Improving response rates? The postal response mode: BER since the 1950s Engaging the Internet medium: a special BER survey (2005Q1): The current mode of response The preferred mode of response Access to the Internet What conclusions can we draw regarding the future development of Internet-based surveys at the BER?

The BER panel of respondents

Composition of the BER panel (2005Q1): sectors Manufacturing Retail Building & construction Food 90 Retail: durable goods 150 Architects 128 Beverages 30 Retail: semi-durable goods 139 Building contractors (incl. sub) 435 Textiles 47 Retail: non-durable goods 229 Quantiry surveyors 180 Clothing 59 TOTAL: 518 Civil engineers 96 Footwear 13 839 Wood products 38 Motor trade Furniture 45 New & used vehicles 179 Paper 52 Printing & publishing 37 Leather products 8 Whole sale Rubber 20 Wholesale: consumer goods 140 Chemicals 91 Wholesale: non-consumer goods 169 Non-metal minerals 309 Basic metals 64 Metal products 81 Machinery 77 Electrical machinery Transport 78 Plastics 72 GRAND TOTAL: 2902 TOTAL 1057

Size & sectoral distribution of BER respondents (2005Q1) Sectors Number % Size groups Manufacturing 383 38.1 Small 414 46.0 Retail 198 19.7 Medium 318 35.3 Motor trade 79 7.9 Large 168 18.7 Wholesale 125 12.5 Building & construction 219 21.8 TOTAL: 1004 100 900

Regional distribution of BER respondents (2005Q1) Number % Gauteng 352 35.1 Western Cape 230 22.9 KwaZulu-Natal 211 21.0 Eastern Cape 110 11.0 Free State 35 3.5 Other provinces 34 3.4 Northern Cape 32 3.2 TOTAL: 1004 100

The special survey: background details

Special questions included in the BER survey (2005Q1) Special survey on preferred response method (Optional) Reason for the special survey The BER depends on you to complete and return the questionnaires in order to conduct the business surveys. With this survey, we wish to find what response method you prefer. Please tick the appropriate boxes. 1. At present, how do you return the questionnaire to us? ⌂ Pre-paid envelope ⌂ Fax ⌂ E-Mail 2. In future, how would you prefer to respond to the questionnaire? ⌂ Internet 3. How do you connect to the internet at work? ⌂ No access to the internet at work ⌂ Via a dial-up service ⌂ Via a local area network (LAN) 4. Any comments? …………………………………………………………………………. …………………………………………………………………………………………….

Question 1: How do BER participants currently respond?

Current mode of response: sectors

Current mode of response: size groups

Current mode of response: regions

Question 2: What is the preferred mode of response according to BER participants?

Preferred mode of response: sectors

Preferring Internet as mode of response: sectors

Preferred mode of response: size groups

Preferred mode of response: regions

Question 3: BER participants’ access to the Internet

BER participants’ access to the Internet: sectors

BER participants’ access to the Internet: firm size groups

BER participants’ access to the Internet: firm size groups

Conclusions Close to 30% of BER respondents prefer Internet mode (92% currently use postal mode) Necessary to develop Internet mode; however, there are pitfalls: 80% have Internet access, only 28% prefer this mode Smaller firms face access constraints/ have lower preference for the Internet Regional / sectoral disparities regarding Internet preference Imperative to have a mixed survey mode Gradual transition from postal to Internet/ long process Relatively small preference for the fax mode A too aggressive move to the Internet risks damaging response rates Consistent with international experience Lower response rates with Internet mode compared to postal mode Item non-response higher? Small firms - lower Internet preference / weaker response rate Different response behaviour: Internet vs. postal? BER has to be careful regarding development of the Internet mode Response rates already low by international standards Additional costs / administrative burden

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