In association with Sun Microsystems Hungary, GKIeNET Internet Research and Consulting Ltd. and T-Mobile Hungary Co. conduct quarterly surveys on corporate internet usage and the development of the electronic economy in Hungary. The present report outlines the position of the corporate sector in the internet economy.
The GKIeNET T-Mobile e-Economy Index, reflecting the perspectives and expectations of economic players regarding the role of the internet and of electronic business applications, declined marginally in the first quarter of 2005. The expectations of corporate actors in general dropped mildly, but this was offset by more optimistic outlooks in certain sectors, particularly in the financial segment. The trend of the GKIeNET T-Mobile e-Economy Index clearly mirrored the movements of the GKIeNET business confidence index during the period under study, suggesting that the actual economic developments have a great impact on the internet-related business expectations of corporations. However, the e-Economy index has not decreased to the extent at which the business confidence has been falling over the past three quarters.
The GKI-T-MOBILE E-ECONOMY INDEX VALUES
Note: The GKIeNET business confidence index is based on the value measured in the final month of the quarter.
In line with the previous quarters, the perspectives of the tourism sector have changed only marginally regarding the business opportunities that the internet has to offer. The responses of companies in the catering sector reflect a neutral or slightly negative opinion on the internet’s role in shaping their business outlook.
In the retail and wholesale sector on the one hand, and in the non-specified economic segments that we refer to as the general corporate sector on the other hand, market expectations have been volatile; both areas saw a slight drop in the fourth-quarter index value.
As seen in the previous quarters, the above-average prospects of the financial sector once again improved the composite value of the GKIeNET T-Mobile e-Economy Index. The e-Finance index has risen considerably since the previous quarter, primarily due to the stronger optimism of insurance companies. Compared with other sectors, financial corporations continue to have the greatest confidence in the internet.
It Is hard to find a small business today that does not have at least one computer, and there is not a single such firm in the categories of medium-sized and large companies.
Micro-businesses with five to nine workers are in a worse position: 17% of them do not use computers at all.
On average, 90% of the companies with five or more employees surveyed use computers. This rate has not changed significantly since our last survey of October 2004.
In march 2005, 75% of all domestic firms with five or more employees had internet access. This reflects a two-percentage-point increase from October 2004, and a five-percentage-point rise from October 2003. Among companies using computers, internet penetration was 83% this spring.
The segment of large corporations saw no change over the past six months, due to full saturation (100%); the growth took place in the categories of small and medium-sized companies.
In the category of medium-sized firms, 97% have web access, reflecting a three-percentage-point rise over the past six months and a four-point increase over the past twelve months.
Internet penetration increased from 70% to 76% among small businesses with 10-19 workers and from 79% to 86% at firms with 20-49 employees.
Micro businesses, on the other hand, seem to be lagging behind larger ones as far as internet penetration is concerned. In the category of businesses with 5-9 workers, penetration has remained flat at 66%.
PERCENTAGE OF COMPANIES WITH INTERNET ACCESS
(IN THE CATEGORY OF BUSINESSES WITH 5+ EMPLOYEES, %)
ABOUT THE SURVEY
The survey was conducted in March 2005 via telephone, targeting a representative sample of 1,000 businesses with five or more employees. The survey covered the entire area of Hungary and all sectors of the economy.