Part
01
of one
Part
01
What percentage of new small businesses require ecommerce for their websites?
Hello! Thanks for your request for global data about the percentage of new small businesses that require e-commerce functionality for their website.
The short version is that there are approximately 200 million new, small businesses worldwide, of which 59% are without a website. Among new, small businesses with no website, 55% plan to have a website in the next two years. And of new, small businesses planning to have a website, 32% plan to have e-commerce functionality ready at website launch, and 16% intend to have e-commerce functionality within a year after website launch.
Below you will find a deep dive of my findings.
METHODOLOGY
After searching extensively through pages and files published no earlier than 2015, the most useful source I found in answering your question is the report on small businesses by Internet domain registrar and web hosting company GoDaddy. I found GoDaddy's report most helpful for the following reasons:
1. The report is based on a study of very small businesses worldwide. Very small businesses, those with five employees or less, can be considered "new" small businesses.
2. The report indicates what percent of these very small businesses plan to have e-commerce functionality at website launch or within a year of website launch.
3. The report contains both global data and country-specific data.
Apart from GoDaddy's report, there were other helpful sources as well. And even though I was unable to find ethnographic information (i.e. customs or culture) on the subject, there were a few demographic information available. You may see below all the relevant insights I have gathered.
GLOBAL DATA
In June and July of 2015, Redshift Research conducted a survey of very small businesses for GoDaddy. All in all, there were 4,009 very small businesses that participated in the survey. The participants, which all had no more than five employees at the time, were from the following countries: Australia, Brazil, Canada, India, Turkey, United Kingdom, and United States.
GoDaddy's report, which was published in 2015 also, mentions there are around 200 million very small businesses worldwide, of which 59% do not have a website. Of those without a website, 55% plan to create a website in the succeeding two years.
Thirty-two percent (32%) of this 55% plan to have e-commerce functionality ready at website launch while 16% intend to have it anytime within a year after launch. This means a total of 48% (or 32% plus 16%) planning to sell online within a year of website launch.
Of the 4,009 very small businesses surveyed, 41% were led by women, 64% had less than 100 customers, and 39% had been operating for no more than three years.
COUNTRY-SPECIFIC DATA
Below are the percentages of very small businesses in each country with no website, with plan to create website, with domain, and with plan to sell online within a year of website launch, according to GoDaddy's report.
United States
----------------
% with no website - 60%
% with plan to create website - 41%
% with domain - 28%
% with plan to sell online within a year of website launch - 49%
United Kingdom
-------------------
% with no website - 60%
% with plan to create website - 33%
% with domain - 29%
% with plan to sell online within a year of website launch - 36%
Brazil
------
% with no website - 62%
% with plan to create website - 71%
% with domain - 21%
% with plan to sell online within a year of website launch - 51%
India
-----
% with no website - 63%
% with plan to create website - 76%
% with domain - 15%
% with plan to sell online within a year of website launch - 51%
Canada
---------
% with no website - 59%
% with plan to create website - 33%
% with domain - 19%
% with plan to sell online within a year of website launch - 40%
Mexico
--------
% with no website - 62%
% with plan to create website - 76%
% with domain - 11%
% with plan to sell online within a year of website launch - 46%
Turkey
-------
% with no website - 47%
% with plan to create website - 70%
% with domain - 21%
% with plan to sell online within a year of website launch - 63%
Australia
----------
% with no website - 61%
% with plan to create website - 35%
% with domain - 29%
% with plan to sell online within a year of website launch - 39%
ADDITIONAL INSIGHTS
My findings from the other sources I have gathered are summarized below.
1. As can be seen in SurePayroll's May 2016 Small Business Scorecard, 72% of small businesses in the United States have a website but, of this 72%, only 26% utilize it for e-commerce. SurePayroll based these findings on data gathered from small businesses that have 1 to 10 employees.
2. Almost half of small businesses in the United States have no website, according to Clutch's recent survey of 352 small business owners and managers. The number of employees and annual revenue of each survey participant were below 10 employees and $1 million, respectively.
3. According to Deloitte's 2017 report on connected small businesses in the United States, only 30% of small businesses have a high digital engagement level (a level wherein the business "have tools like a more advanced website, such as one with mobile or e-commerce capabilities, and is engaged with multiple social media and online marketing channels"). Of this 30%, 58% have online booking or e-commerce functionalities. This is based on a survey of more than 2,000 small business owners and managers in the country.
4. According to a 2016 report by the Office for National Statistics, in 2015, 80.6% of businesses with 10 to 49 employees in the United Kingdom had a website while 46.4% of micro-enterprises, or those with less than 10 employees, had one. Of businesses with 10 or more employees, only 21.5% were making e-commerce sales.
5. Surprisingly, the percentage of small businesses that have e-commerce functionalities is higher in Indonesia (93.8%), China (90.1%), Vietnam (85.1%), Hong Kong (80.4%), Malaysia (73.2%), and Singapore (63.6%) than in New Zealand (37.0%) and Australia (33.0%), according to CPA Australia's 2015 survey of 2,932 Asia-Pacific small businesses. Survey participants had less than 20 employees. Based on the survey, most of the small businesses with online sales presence have 5 to 19 employees and are in the manufacturing industry.
6. According to the Sensis e-Business Report 2015, among Australian small businesses, 83% are connected to the Internet, 42% take orders over the Internet, and 51% receive payments over the Internet. This is based on a survey of 900 businesses with less than 20 employees.
CONCLUSION
In summary, 59% of around 200 million new, small businesses worldwide do not have a website. Of this 59%, 55% plan to have a website in the next two years. And, of this 55%, 32% plan to have e-commerce functionality ready at website launch, and 16% intend to have e-commerce functionality within a year after website launch.
Thanks for using Wonder! Please let us know if we can help with anything else!