establishments in the banking/insurance industry is the highest, followed by the retail and 
manufacturing industry, SMEs invest an average of 4.4%, nearly the same as large firms (5.4%) 
across all industry sectors. Weighted by the number of SMEs, the generated absolute amount of 
IT investments is significantly higher than the IT investments of large establishments. This 
resembles a relatively higher burden for SMEs than for large firms, which may profit from their 
sheer size and economies of scale. Nevertheless, the average percentage of IT investments is 
5.4% with large firms and only 4.4% with SMEs. The total mean of 4.4% is equivalent to the 
average percentage of SMEs, due to the large number of SMEs.  
TABLE 9  IT Operating Budget as a Percent of Establishments Revenue in 2001 
 Establishm
Total
a
ent 
Size 
Industry 
SME Large 
Manufacturing Retail/  Banking/ 
Wholesale
Insurance 
<10% 
66.7 67.3 44.1 
62.0 
67.6 
74.4 
10 20% 
16.2 16.3 10.2 
13.2 
16.8 
20.6 
20 50% 
0.1 0.0 2.6 
0.0 
0.1 
0.0 
Don't know or refused 
17.0 
16.4 
43.1 
24.8 
15.5 
5.0 
Percent of establishment's total 
IT 
(mean) 
4.4 4.4 5.4 
3.9 
4.3 
6.4 
Notes:  
a
Results are weighted by the total number of establishments in an industry by size of firm. 
Source:  CRITO Global E Commerce Survey, 2002 
Aside from the relative amount of IT investments by revenue (Table 9), Table 10 provides 
information about the IT budget per employee. The heterogeneous responses allow no 
significant, error free proposition due to high volatility. However, the quantitative differences 
among the three industries are recognizable. Again, the highest IT investments are observable in 
the banking/insurance industry, followed by the retail/wholesale industry and the manufacturing 
industry. Surprisingly, SMEs have a higher IT budget per capita than large establishments in the 
banking/insurance sector. The large difference can be explained due to the bias of the 
unrepresentative data subset, which is not broad enough to calculate an average IT budget with a 
maintainable variance. Nevertheless, the results may provide a qualitative view on the situation 
of SMEs in this sector. Small banks and especially insurance firms have to invest more, while 
large ones have made their IT investments already. 
TABLE 10  IT Operating Budget Per Establishment's Employee in Dollars 
 Manufacturing Retail/ 
Banking/ 
Wholesale
Insurance 
 SME 
Large 
SME 
Large 
SME 
Large 
IT Budget (mean) 
$472,039  $13,757,086  $6,871,840 
$127,246,705 
$13,725,253  $19,431,766 
Employees (mean)  
85 
1383 
123 
1772 
113 
943 
Budget per Employee  
$5,553 $9,947 $55,869 $71,810 $121,462 $20,606 
   (mean)  
Source: CRITO Global E Commerce Survey, 2002, unweighted sample. 
15






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