156/04
17 November 2004

ICT Production by SMEs Worth Billions

A high percentage of small-to-medium enterprises (SMEs) not directly involved in the ICT sector produced ICT worth around $15.5 billion in 2003-04, Minister for Communications, Information Technology and the Arts, Senator Helen Coonan, said today.

Releasing ICT Production in Australian SMEs, a report stemming from the ICT Framework for the Future (F3) strategy, Senator Coonan said it was good news that around 74 per cent of actual ICT production by SMEs was occurring outside of the ICT sector.

"This report provides valuable insight into the take-up and value of ICT to our SMEs," Senator Coonan said.

"The report found 16 per cent of the 1800 SMEs surveyed were involved in some form of ICT production with 74 per cent of that production occurring outside of the ICT sector and generating $15.5 billion in the 12 months to April 2004.

"SMEs producing ICT also had a higher rate of exports than other SMEs according to the report - 26 per cent compared to 16 per cent of SMEs not producing ICT."

Designed to be a useful tool for policy development and industry analysis, the report surveyed SMEs across a range of sectors including business services, retail, manufacturing, hospitality and transport and construction.

Five per cent of the SMEs surveyed had employees solely dedicated to ICT.

"One of the main reasons SMEs cited for the high level of ICT production was that suitable goods and services were not available off the shelf. They also said that it was more cost effective to undertake ICT production for internal use," Senator Coonan said.

"The report's findings are encouraging and the research undertaken is the first of its kind, providing valuable information for Government to feed into policy making and other decisions affecting the small business community and ICT producers."

The report is available at the publications link at www.dcita.gov.au.