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E-Commerce Among OK Value-Added Entrepreneurs

E-Commerce Among OK Value-Added Entrepreneurs . Glenn Muske Rodney Holcomb Mike Woods. E-commerce Oct, 2001. 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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E-Commerce Among OK Value-Added Entrepreneurs

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  1. E-Commerce Among OK Value-Added Entrepreneurs Glenn Muske Rodney Holcomb Mike Woods E-commerce Oct, 2001

  2. Research Objectives • Identify start up & growth road blocks for value-added business owners • Examine information technology use • Access & ability to compete in global market

  3. Literature • Medium to Large Business – 80% have sales web site • Small Business – 50% have sales web site • Small Business Computing, May, 2001

  4. 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

  5. Demographics

  6. Reasons to Start

  7. Technology Use

  8. Internet Use

  9. Why not? • 48% Lack of Knowledge/Desire

  10. Overall Profit

  11. Value-Added OwnerDemographics

  12. Reasons to Start(Web site vs No Web site)

  13. 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%

  14. Web Site Owners • Web Revenue • Mean = $7430 • Median = 42250 • Web Expenses • Mean = $1435 • Median = $500

  15. 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

  16. Web Site Sales

  17. Significant Factors of Value-added Web Owners • 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

  18. Significant Factors of Value-added Web Owners • More likely to have used OK Coop. Ext. • More likely to expand somewhere else • Rural person more likely to move outside county • More likely to have had business training • More use of computer • Finance, Internet, purchasing, customer info, leads

  19. Significant Factors of Value-added Web Owners • More likely to have modified goals because of awareness of complexity • More likely to feel have adequate financing • More full-time employees (2.8 vs 2) • More likely to say quality evaluation a problem

  20. 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

  21. Web Satisfaction • With contacts • 46% Somewhat or very satisfied • With sales • 46% Somewhat or very satisfied

  22. Web Problems

  23. More Information Glenn Muske Micro & Home-Based Business Specialist OK Cooperative Extension Service 405-744-5776 muske@okstate.edu

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