# Barriers to SME e-Procurement Solutions in Canada: A Survey

> MeRC Working Paper #7 by Cuthbert, Hamzic and Archer, August 2003: a June-July 2003 survey of 53 Canadian SMEs on barriers to e-procurement.

Page URL: https://merc-mcmaster.ca/working-papers/barriers-to-sme-e-procurement-solutions-in-canada-a-survey/

Working Paper #7 by Cam Cuthbert, Dan Hamzic and Norm Archer, August 2003.

## Background

- Many SMEs used manual procurement: paper, phone, e-mail and fax.
- Result: limited reporting, unauthorized spending and lower vendor compliance.
- Most e-procurement tools were expensive, complex and aimed at larger firms.

## Survey

- The study examined barriers Canadian SMEs perceived.
- 53 companies responded, mainly by e-mail, in June and July 2003.

## Findings

- Acceptance was slow compared with other Internet-based solutions.
- Many companies did not know e-procurement solutions.
- Almost half would not consider them within three years.
- Cost control and ROI were the strongest motivators.
- Security and financial support were among the lowest barriers.
- Suppliers' promotion was the favoured route; outsourcing was least favoured.
- Functionality mattered most; price mattered least.
- Medium-sized firms were more favourable than small firms.
- Managers had a limited understanding of solutions and vendors.