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ICT production for sale

In order to provide SMEs with an idea of the breadth of goods or services that could be encompassed by the term ICT, SMEs were given examples of ICT production. These included hardware, components, software, advice or consultancy on computers or software, database development, repair of high technology equipment and web design, however, ICT production was not limited to these goods specifically.

When asked whether their business produced any ICT goods or services for sale, six per cent of all SMEs responded that they did, which was relatively consistent with the seven per cent that reported production in May 2004. Consistent with last year's findings, the communication, property and business services sector recorded the highest proportion of SMEs producing ICT for sale. This was followed by the wholesale trade sector, however at a much lower level of involvement.

The most frequent amount of revenue gained from the sale of ICT in the last twelve months was between $500,000 and $1,000,000. This compares to last year's finding where the most frequent amount of revenue was under $10,000. This represents an increase in the overall revenue that SMEs are earning from the sale of ICT goods and services. This can particularly be seen in the proportion of SMEs that are earning over $100,000 from the sale of ICT goods and services. In May 2005 42 per cent of ICT producing SMEs reported earning over $100,000 from the sale of ICT goods and services, up from 32 per cent in May 2004.

Using a midpoint calculation, the total amount of revenue from the sale of ICT goods and services produced by SMEs is in the vicinity of $27.5 billion1 , which is approximately three per cent of Australia 's Gross National Income. As a very conservative estimate, using the lowest point of each revenue range, the total amount of revenue would be at least in the order of $12 billion.

Almost three-quarters (74 per cent) of SMEs who had produced ICT goods or services for sale had exported some of their products. The most common amount of revenue that SMEs had received for the export of ICT goods and services was between $50,000 and $100,000, reported by 45 per cent of SMEs who had exported ICT products.

The top export destination for SMEs that reported producing and exporting ICT goods or services was Asia, reported by 48 per cent of these SMEs, followed by the Middle East and North America , where 25 per cent and 21 per cent of ICT producing and exporting SMEs exported respectively. Examples that were fairly common amongst SMEs in this area were heavily service oriented, with computer and communications consultancies, often including aspects of software and website design to Asian destinations being among the most common.

ICT production for sale by industry sector
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approximate annual revenue from sale of ICT
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approximately annual revenue from export of ICT
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key destinations for ICT exports
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Table 3 ICT items produced for sale by SMEs
Base – those SMEs who produced ICT goods or services for sale in each sector (an average of six per cent of all SMEs)
How did SMEs design or develop ICT goods for internal use
Average Industry Sector
Manufact-uring Construc-tion Wholesale trade Retail trade Transport/ storage Communica-tions, property, and business services Finance and insurance Health and community services

Computer and data processing services (eg website design, software services etc)

77%

*

*

*

*

*

*

 

*

Computer consultancy services

44%

*

 

*

*

*

*

 

*

Packaged and customised software

36%

*

*

*

*

*

*

 

*

Hardware and software maintenance

30%

*

*

*

*

*

*

 

*

Computer Hardware

26%

*

 

*

*

*

*

*

*

Information storage and retrieval services

24%

*

 

*

*

*

*

 

*

Electronic equipment

24%

*

*

*

*

*

 

 

*

Telecommunication services

17%

*

 

*

*

*

 

 

 

Installation and cabling services

17%

 

*

*

*

*

 

 

 

Communications hardware

17%

*

 

*

*

*

*

 

 

Computer and communications parts and components (eg circuit boards, chips etc)

15%

*

 

 

*

*

 

 

*

Computer and communications consumables (eg. Floppy disks, cds, tonner cartridges, etc)

10%

 

 

*

*

*

 

 

*

Software programs

3%

*

 

 

 

*

 

 

 

Other

11%

 

 

 

*

*

 

 

 

* indicates a sector nominating that item of ICT production

1 This calculation assumes a midpoint value of production for each revenue range against a weighted base of 51037 firms, which was split as shown against the various revenue ranges.

 

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Document ID: 32662 | Last modified: 5 February 2008, 3:23pm