Information technologies in business activities at the beginning of 2005

13.04.2006

In May 2005, the Central Statistical Bureau of the Republic of Latvia with the financial support of the European Commission conducted a survey on the use of information and communications technologies (ICT) and e-commerce among the merchants.

Merchants with employees numbering 10 and more were surveyed in all member states of the European Union (EU) but only in a few countries (including Latvia) merchants with a lower number of employees (1-9) were surveyed additionally. In order to provide a possibility to compare Latvia’s figures with those of the other EU member states, this press release shows data on the merchants who employ 10 or more persons.

This press release presents the main results of the 2005 survey. The questions posed concerned January 2005 but a few questions were about the indicators of 2004. As a result of the survey, information was acquired on the level of computerisation among the merchants, the percentage share of those employees who use a compute/Internet regularly in their work and on the objectives of Internet use and the kinds of Internet connection as well as on the main indicators reflecting e-commerce activities in Latvia.

Six out of seven enterprises use a computer in their business activities

86% of the merchants at the beginning of 2005 used a computer. This indicator is however much higher in the merchant groups with the number of employees 5-249 and 250 and more: the share of computer-using merchants is 98% and 99%, respectively. The computers were mostly used by those merchants the activity of which were linked to real estate transactions, lease or other commercial activity as well as by the merchants engaged in the provision of services in hotels, restaurants and in other entertainment activities (for example, recreation, culture and sport).

Use of computers by merchants in 2005

(per cent of the total number of merchants in the respective group)

 

2005

Computer use by merchants with the number of employees 10 and over

86

of which:

 

merchants with the number of employees 10-49

84

merchants with the number of employees 50-249

98

merchants with the number of employees over 250+

99

The Internet is available to 75% of the merchants and 48% of merchants have the broad band connection

During the year the number of Internet-using merchants has practically not changed (75%). The highest share of the Internet users was in wholesale trade (92%) followed by those merchants that provided services in hotels and restaurants (89%) and in the area of commercial services (86%).

The Internet is likewise more frequently used by the large-scale merchants. According to survey data, 93% of the merchants with 50-249 employees and 98% with 250 and more employees used the Internet in 2005.

The broadband Internet connection plays a decisive role in the implementation of the possibilities of information society. The broadband connection ensures higher data transmission velocity and permanent online access. The broadband connection is much more effective for the development of e-administration, e-business, e-education and other interactive services.

The broadband connection and Internet use by merchants

(per cent of the total number of merchants in the respective group)

According to results of the survey, Latvia lags behind the EU countries in regard of Internet access in general and the use of the broadband connection.

Proportion of merchants (with 10 or more employees) with Internet access and broadband connection
in EU member states in 2005

(per cent of the total number of merchants in the respective group)

 

EU25

EU15

BE

CZ

DK

DE

EE

EL

ES

IE

IT

CY

LV

LT

LU

HU

NL

AT

PL

SI

SK

FI

SE

UK

NO

Merchants,
total

*

63

65

78

52

82

62

67

44

76

48

57

40

48

57

64

48

71

61

43

74

48

81

83

65

78

**

91

92

95

92

97

94

90

92

90

92

92

85

75

86

92

78

91

95

87

96

92

98

96

90

93

250+

*

92

93

93

81

97

95

91

77

93

86

93

91

73

72

85

83

92

94

90

96

66

96

98

90

98

**

99

99

98

100

100

99

95

100

98

100

99

100

98

100

100

99

97

100

99

100

98

100

100

100

100

50-249

*

79

83

89

65

91

82

79

59

86

62

79

60

60

67

77

66

84

81

65

88

60

90

94

84

91

**

98

98

99

98

100

99

96

98

96

98

98

99

93

98

98

100

96

99

98

98

98

99

100

99

98

10-49

*

59

61

75

48

80

57

63

41

74

43

54

36

45

54

61

43

68

56

36

69

45

78

80

61

76

**

90

91

94

91

97

93

88

90

89

90

91

82

71

83

91

74

89

94

84

95

91

98

95

88

92

 *Broadband connection
 **Internet access

________________

Eurostat data, Community survey on ICT use
Data on FR, MT, PT, IS are not available

More than one third of the merchants use the Internet to cooperate with central and local government administrative institutions

Every third merchant (32%) used the Internet for co-operation with central and local government administrative institutions in order to acquire information but only 15% of the merchants used it for complete electronic co-operation (for example, for online completion of the questionnaires).

Most often the merchants used the Internet for receiving banking and financial services (65%), market research and analysis (46%) and for training and educating their employees (29%).

Main objectives of Internet use

(per cent of the total number of merchants in the respective group)

  

2005

Internet use for co-operation with central and local government administrative institutions

35

to acquire information

32

to obtain the questionnaire forms

30

lai iesniegtu aizpildītas veidlapas

15

Objectives of Internet use

 

banking and financial services

65

training and education

29

market research and analysis (e.g., investigation of prices)

46

reception of digital products (e.g., computer programmes, music, video, games, etc.)

15

papildus pakalpojumu saņemšanai pēc pirkuma veikšanas

10

One of the most important conditions in e-commerce is the homepage. Every third merchant (29%) has a home page. These merchants used the homepage on the Internet mainly for the marketing of their products.

7% of the merchants made purchases of goods or services via the Internet

In recent years merchants have displayed their interest in e-commerce. Although the share of the merchants who have made purchases or sold products via the Internet is very small, its growth is noticeable. Besides, the number of those merchants who make purchases via the Internet is growing more rapidly.

Development of e-commerce among the merchants

(per cent of the total number of merchants)

   

Proportion of merchants who made purchases via Internet

Proportion of merchants who received orders via Internet

Merchants with he number of employees 10+

7

2

of which:

   

merchants with the number of employees 10-49

7

2

merchants with the number of employees 50-249

9

3

merchants with the number of employees 250+

17

3