Home-based e-business - an option for the self-employed?

2.5. Barriers in adopting e-business in Hong Kong

  Regarding the factors inhibiting the adoption of E-Commerce, the major concern perceived by SMEs varies between different surveys. In the PriceWaterhouseCoopers' report (1999) [31], the most significant barriers to E-Commerce adoption for participating SMEs in APEC member economies are the relatively low use of E-Commerce by both customers and suppliers.

In the survey "KITE" (1999) [25] that focused on the US and European firms, most respondents cited costs as the primary obstacle, slightly outweighing security and technology concerns combined. SMEs' investment costs constitute typically a greater proportion of revenue than large firms. For example a web server, database and leased lines plus case management tools, or a third party "virtual office" service run by an Internet service provider can be very expensive for a small company.

  In Hong Kong, although the "Survey on E-business Adoption in Hong Kong" by HKPC and IBM (2000) [22] shows that the major problems among local SMEs in adopting E-business are lack of financial resources, lack of skills required and lack of human resources. It is worthwhile to be aware of the Chinese Cultural factors as raised by Deng Shoupeng [9] if the E-business involve domestic market or intend to explore and access the market in China after it enters the WTO.

Summary

  Although Hong Kong is regarded as an entrepreneurial society, e-business has not taken off in Hong Kong . Most companies are still focusing on traditional business as reflected by the low adoption level of e-business for the SMEs in Hong Kong . In the next chapter, the business opportunities that are available for home-based e-businesses will be explored and discussed.