Analysis of E-commerce Characteristics of SMEs: Evidence from Scotland

Abstract

The development of internet and digital tools has inspired the dramatically increased usage of e-commerce in the past decades. Both small and medium sized enterprises and the economy could benefit from e-commerce adoption. Based on Scottish government survey data in 2021, this study analysed the main features of e-commerce in SMEs and explored factors influencing the level of e-commerce usage. Research variables include size of businesses, business market, sector, business location, use of technologies, and investment in digital. The findings of the study show that: (1) micro-sized enterprises are more favoured in using e-commerce to selling goods or services; (2) though businesses adopting less technologies rely less on e-commerce, they have shown greater inclination in digital investment; (3) business sector and location could affect the choice of SMEs in adopting e-commerce. The findings signal that further research could explore the effects of other variables and COVID-19 on e-commerce usage in SMEs.