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SA SMEs unprepared to unlock e-commerce potential

By Tracy Burrows, ITWeb contributor.
Johannesburg, 30 Mar 2015

While e-commerce could propel South Africa's small and medium-sized enterprises into the big league, most SMEs have been slow to enter the e-commerce space, says MTN Business.

Greg Hatfield, general manager: Marketing, Products & Solutions at MTN Business, says most local SMEs which could be expanding their business revenue through online sales have not moved beyond creating a basic online presence. This too, is important, however. The 2012 SME Survey by World Wide Worx found 20% of formal South African SMEs said their businesses would not have been possible without a Web site.

"SMEs are typically focused on their core business, and do not have the resources necessary to roll-out complicated e-commerce systems, even though e-commerce could significantly increase their revenue in the longer term.

"Many of those who would like to extend their brick-and-mortar sales through e-commerce find most e-commerce solutions too complex to set up and manage, and are discouraged from entering the e-commerce arena."

Another hurdle is the cost and complexity of opening a merchant account. As part of its new focus on the SME market, MTN Business has brought to market its new Build Your Business Online (BYBO) suite of solutions, which are designed to give local SMEs an online presence and to lower their barriers to entry to the world of e-commerce.

"BYBO has been developed to overcome the challenges and concerns SMEs have when it comes to e-commerce," says Hatfield. "MTN's e-commerce facility is easy to use and quick to set up. The BYBO packages, starting at a cost of R60 per year for a basic online presence, give SMEs site builder tools, hosting, the use of MTN Business's super merchant account, a PCI-compliant electronic payment gateway and even a delivery module that allows site owners to track orders and determine which deliveries must be made by when."

MTN Business is also in talks with potential logistics partners to support order fulfilment. The BYBO suites are designed to level the playing field so that even small business can offer secure, professional e-commerce.

The BYBO tools are backed by MTN Business consultants and regular SME workshops to help small and micro businesses get to grips with digital marketing and business development.

"Many South African SMEs have been looking to get into the e-commerce space, but have not felt equipped to do so on their own. Now, in partnership with MTN Business, they will be able to become e-commerce players at low risk and low cost. We view SME growth into the online space as a key enabler to economic growth and job creation - therefore, our BYBO suite of services and solutions will be expanded over time to enhance SMEs' ability to sell, manage and market their businesses online," he says.

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Editorial contacts

Tracy Burrows
MTN BYBO
(011) 807 3294
tracy@itweb.co.za