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
Literature
 Medium to Large Business – 80% have
sales web site
 Small Business – 50% have sales web site
– Small Business Computing, May, 2001
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
Demographics
Total Sample
54%
51
23%
25%
24%
3
Male
Mean Age
Farm
Rural, Non farm
City> 50,000
# employees
Value-Added
56%
51
28%
22%
18%
3.2
Reasons to Start
Control/Independence 50%
Financial
18%
Use Ag Output
12%
Technology Use
All
Respondents
87%
WP
Value-Added
83%
80%
Financial
83%
62%
Graphics
60%
45%
Production
49%
51%
Publications
55%
59%
Database
62%
89%
Internet
90%
(n=193)
Internet Use
96% Email
66% Marketing Information
68% Customer Information
46% Leads
42% Customer Service
39% Purchasing
38% Travel
28% Non Web Sales
Why not?
 48% Lack of
Knowledge/Desire
Overall Profit
All
Respondents
29%
0
Value-added
33%
21%
<$500
21%
18%
<$25,000
15%
6%
>$75,000
4%
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%
Web Site Owners (n=18)
 Web Revenue
– Mean = $7430
– Median = 42250
 Web Expenses
– Mean = $1435
– Median = $500
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
Significant Factors of Valueadded 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
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
Web Site Sales
ValueAll Web added
Owners only
50% of sales within
No Valueadded Web
Sales
37%
36%
<50 miles in OK
63%
12%
13%
>50 miles in OK
6%
19%
6%
Surrounding States
6%
24%
13%
U.S.
0%
3%
0%
World
0%
Web Satisfaction
 With contacts
– 46% Somewhat or very satisfied
 With sales
– 46% Somewhat or very satisfied
Web Problems
35%
None
19%
Development
23%
Updating
12%
Hits
12%
Other
More Information
Glenn Muske
Micro & Home-Based Business Specialist
OK Cooperative Extension Service
405-744-5776
muske@okstate.edu