Small firms are less likely to have access to the Internet compared with their medium-sized and large counterparts, says the new issue of the Statistics Canada Connected- ness Series.

The report, titled Embracing e-business: Does Size Matter?, shows that medium-sized and large businesses have been quick to adopt the Internet and to create their own websites.

But when it comes to more sophisticated business applications, such as buying and selling online, firms of all sizes in Canada are slow to implement.

While size does appear to matter as to whether a firm is connected, industry also plays an important role, according to the report. Industries in the information and cultural sector, as well as those in educational services, were clear leaders in both Internet use and website ownership, regardless of firm size.

Data for this report, which came from the annual Survey of Electronic Commerce and Technology (SECT), showed that 68 per cent of small firms had Internet access in 2001, well below the proportion of 91 per cent among medium-sized firms and 94 per cent among large firms.

(Firm size groupings were based on the number of full-time employees: small firms had up to 19 employees, medium firms from 20 to 99 and large firms 100 or more. For manufacturing industries, medium firms had between 20 and 499, and large firms 500 or more).

About 74 per cent of large firms had a website in 2001, compared with 57 per cent of medium-sized firms and only 24 per cent of small firms.

Differences in size and industry were also apparent for selling and purchasing online. However, businesses of all sizes have been slower to adopt these more sophisticated e-business applications, compared with Internet connectivity and website ownership.

The proportion of firms selling online remains low, dropping from 10 per cent in 1999 to seven per cent in 2001. However, the dollar amount of online sales has been steadily increasing – from $4.2 billion in 1999 to $10.4 billion in 2001.

This suggests that e-commerce is growing and consolidation is occurring in the electronic marketplace.