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Published byHector Grant Modified over 9 years ago
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E-Commerce Among OK Value-Added Entrepreneurs Glenn Muske Rodney Holcomb Mike Woods E-commerce Oct, 2001
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Research Objectives Identify start up & growth road blocks for value-added business owners Examine information technology use –Access & ability to compete in global market
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Literature Medium to Large Business – 80% have sales web site Small Business – 50% have sales web site –Small Business Computing, May, 2001
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Methods Telephone Survey –274 Micro business owners 10 employees or less –70% Response rate N=193 –103 Value-added businesses 71 food 32 other agriculture
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Total SampleValue-Added 54%Male56% 51Mean Age51 23%Farm28% 25%Rural, Non farm22% 24%City> 50,00018% 3# employees3.2 Demographics
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Reasons to Start Control/Independence50% Financial18% Use Ag Output12%
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All Respondents (n=193) Value-Added 87%WP83% 80%Financial83% 62%Graphics60% 45%Production49% 51%Publications55% 59%Database62% 89%Internet90% Technology Use
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Internet Use 96%Email 66%Marketing Information 68%Customer Information 46%Leads 42%Customer Service 39%Purchasing 38%Travel 28%Non Web Sales
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Why not? 48% Lack of Knowledge/Desire
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Overall Profit All RespondentsValue-added 29%033% 21%<$50021% 18%<$25,00015% 6%>$75,0004%
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Web Development # with web sites – 34 Average # months on Web –18 Who designed? –Company – 57% –Individual (not owner) – 29% Who maintains? –Company – 38% –Self – 35% –Individual (not owner) – 27%
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Web Site Owners (n=18) Web Revenue –Mean = $7430 –Median = 42250 Web Expenses –Mean = $1435 –Median = $500
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Web Profit Mean = $6359 Median = $1500 35% Earn $0 or less 12% Earn $19,500 or more 3% Web decreased overall profit 6% Web added to overall profit
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Significant Factors of Value- added Web Owners More likely to use computer Sell less with in 50 mile radius Sell more outside of 50 mile radius in OK Sell more in U.S. Want to increase sales Added new product/service Improved customer service
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Affect of Time with Web Site Profits not significantly different –Substantial $9983 (≥ 18 months) vs. $3138 (< 18 months) Sites ≥ 18 months –More interested to expand U.S. sales –More likely spouse has a job outside –More likely to be “other ag” business
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Web Site Sales All Web Owners Value- added only50% of sales within No Value- added Web Sales 37%36%<50 miles in OK63% 12%13%>50 miles in OK6% 19%6%Surrounding States6% 24%13%U.S.0% 3%0%World0%
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Web Satisfaction With contacts –46% Somewhat or very satisfied With sales –46% Somewhat or very satisfied
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Web Problems 35%None 19%Development 23%Updating 12%Hits 12%Other
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More Information Glenn Muske Micro & Home-Based Business Specialist OK Cooperative Extension Service 405-744-5776 muske@okstate.edu
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