Guysborough County Business Development Corporation (GCBDC) - Canada

This project is an example of how an organisation like the CBDC can take a practical, hands-on approach to helping small businesses "test the waters" of e-commerce. SPI provides a business model (called "Surefire Strategies for Making Money on the Internet"), online training and marketing, web services platform, e-payment, and Electronic Customer Relationship Management (eCRM) for all participating merchants. The mentoring environment, combined with the business and marketing strategies, are meant to support the participants' success. The idea is that the project partners take the technology, security, privacy, and trust concerns out of the decision-making equation for the participants, allowing them to focus on making their online businesses.

Specifically, the GCBDC selected 12 small businesses as participants for this pilot project from its client base, then developed e-commerce-enabled storefronts for each. In addition, the GCBDC coordinated a comprehensive training programme for the entrepreneurs and their staff in e-commerce and online marketing skills. As part of this training, which cost CDN$250 per person, participants took part in a guided year-long programme that imparted the skills and techniques necessary to succeed at e-business. Through information sessions, online tutorials, one-on-one instruction, telephone support, and webboard assisted mentoring, the participants learned:

• How to set up their businesses online, including set-up of appropriate domain names and web hosting, arrangements for secure server, payment hosting, and merchant accounts
• How to operate shopping cart software - adding, deleting and changing products in their carts - as well as configuring all aspects of the transaction cycle including shipping, taxes, size, and colour selection, etc.
• How to conduct basic web design using popular software tools to maintain their sites and make changes to the appearance.
• How to market their sites online using advanced e-commerce marketing techniques.

The Project Co-ordinator was an Human Resources Development Canada (HRDC)-funded Youth Intern who was also a novice at the Internet and computers. Organisers worked closely with her in conjunction with the participants to equip her with new technology, project management, and administrative skills and competencies. Organisers explain that this young coordinator was essential to provide personal, one-on-one support - especially in the rural region of Canso. They say that it was critical to provide personal communication as well as the more impersonal (although constantly available) online mentoring system.

Rural Economic Development, Technology.

In March 2000, the Atlantic Canada Opportunities Agency released a study entitled "The State of Electronic Commerce in Atlantic Canada". The following is taken directly from the final report for the study by innovaQuest Inc. of Saint Johns, Newfoundland: "Although Atlantic Canada is positioned to take advantage of the rapid growth in e-commerce, and has already achieved an enviable degree of connectivity on the Internet, it is not pursuing its advantage aggressively and is falling behind the United States. Further, evidence suggests that Atlantic Canada is now lagging behind the rest of Canada. Atlantic Canadian Small and medium Enterprises (SME's) are significant users of the Internet, but with the exception of Nova Scotia, which is at the national average, trail behind in developing an e-commerce presence. In general, the Internet is not playing a major business role among SME's in the region. If Atlantic Canada continues to fall behind the rest of Canada, then it may become too difficult to catch up in this fast developing economic area. SME's are lagging significantly and the single factor causing this lag is a lack of awareness of what e-commerce is and how it can benefit an SME. Relating to this awareness issue are the following factors:

1. Not only do SME's not understand the technology associated with e-commerce, but they lack a knowledge of the marketing skills and business strategies needed to succeed;
2. SME's tend not to acquire the mechanisms to provide full transaction capabilities on the internet;
3. There is a lack of knowledgeable bankers, and investors who are fully cognizant of the barriers and advantages of e-commerce;
4. There are misunderstandings among SME's and e-commerce service suppliers about the requirements and associated costs to set up a merchant account with a bank for internet transactions;
5. There is a need for ubiquitous high speed connectivity through Atlantic Canada so that SME's everywhere in the region can benefit equally;
6. There is a lack of co-ordinated governmental programming to assist and encourage SME's to participate in e-commerce."

Source: Atlantic Canada Opportunities Agency, the State of Electronic commerce in Atlantic Canada, March 2000, innovaQuest Inc.

Organisers say that a number of participants were very successful, selling thousands of dollars worth of products through their newly created websites. Others sold items in a traditional fashion, after buyers were led to them by their websites. Still others just felt that the exposure helped them to be more successful. Finally, some participants did not have spectacular sales experiences, but felt that the training was worthwhile. (In most of the low-to sales cases, the main causal factor seemed to be that the product just wasn't suitable for online sales.) Those participants participating online with the tutorials etc. tended to have the highest revenue returns. There was a 30% retention of participants when the pilot ended. According to SPI, the Guysborough HRDC was pleased with the results of the pilot and is currently negotiating with funding agencies to proceed with the next phase.