Online business survey results from Sensis
Online business owners are more confident, more profitable, more likely to be planning business growth, and are performing better than the general business community. Fact!” says Larry Bloch, CEO of Netregistry. The second annual survey of Netregistry customers indicates that online business is behaving very differently to the average small to medium enterprise (SMEs) during the current downturn.
The results of the survey, conducted In November 2008 by Sweeney research for the Sensis Quarterly Business Index, showed that online business promises to be far more resilient and should see substantial growth through 2009.
What Does Sensis Say About Online Business?
- Online businesses are younger. Netregistry SMEs are three times more likely than SMEs across the board to be aged between 0-9 years. 75% versus 25%
- Online business owners are more confident. 46% versus 13% 3.5 times.
- Online businesses are more likely to be planning expansion. 57% compared to 39%
- Online business performance indicators are higher. In all key areas – including sales, profitability, capital expenditure and employment.
- Online businesses are twice as likely to export. 28% compared to 15%
- Online businesses are more profitable.
With significant year-on-year growth in online sales in 2008, particularly in the final quarter leading up to Christmas, online business seems to be defying all the economic trends, as Bloch explains. “As budgets tighten and families stay home more, they are turning to the internet to find bargains. With fewer overheads, online stores often deliver more competitive prices than some major high street stores and consumers have been discovering the convenience of shopping without leaving the house.”
Netregistry expects to see a rise in the launch of online stores in 2009, with traditional retailers tapping into the online revenue stream and new businesses taking advantage of the low cost of internet business.
The Sensis survey of this group was balanced against a sampling of the general SME community.