Thank you very much, Mr. Chair and members of the committee.
I am very pleased to be appearing before the committee today as you study the adoption of e-business solutions in Canada. Appearing with me today is Morgan Elliot from Research In Motion, who also serves as the chair of the Canadian Chamber's innovation committee. I am very pleased as well to be on the same panel with Ian McLean from the Kitchener-Waterloo Chamber of Commerce.
I will make brief comments. Morgan is here to answer more detailed questions you may have.
Mr. Chairman, for many years now, the Canadian Chamber of Commerce has been a proponent of having all businesses, but especially smaller businesses, adopt e-business solutions that will enable them to thrive not just domestically but globally as well. Just this year, we partnered with Google on the launch of “Get your business online”, a program that targets small and medium size businesses that lag in the adoption of e-commerce solutions. This initiative offered smaller businesses the opportunity of a free website and domain name for a year, with the intention of growing e-commerce adoption among Canadian businesses.
In 2010, the Canadian Chamber released a report entitled Powering up the Network. It was a report on small business use of e-business solutions in Canada. We surveyed our members, the majority of whom are small businesses, to gauge how they are using ICTs and what they could be doing better. We were pleased that almost 1,000 businesses from across the country participated. Of the respondents, 66% had between 1 and 10 employees. Some highlights of the report include, first, that 96% of companies have a website for business purposes; only 27% of respondents were able to accept online payments; only 31% of businesses provided the opportunity for online ordering and tracking of goods; only 51% are sending and receiving electronic invoices; only 45% send and receive data to and from governments, such as tax information. And regarding cyber-security matters, most had anti-virus protection, but 19% said they didn't have a secure server, and 42% did not back up their data off-site.
Clearly, there are many improvements that need to be made. I have brought copies of the report with me today for you to review. Many other countries around the world are outpacing Canada in ICT and e-commerce adoption, and we need to play catch-up or risk falling further behind. The United States, Australia, Denmark, and South Korea are a few of the nations that have invested very heavily in ICT, realizing the potential return for businesses and citizens.
The Canadian Chamber has pushed for government leadership in the area of e-commerce and ICT for a number of years, given that it is a proven drivers of productivity. We have been working with Industry Canada as they continue to develop the digital economy strategy. In these economic times, we need to put a greater focus on ICT innovation and the knowledge-based economy.
While the government has made some commitments for broadband infrastructure over the last couple of years, it is clear that more is needed because a connected country is a competitive country. The public and private sectors must continue to work cooperatively to create an environment of innovation and to establish a solid, viable strategy for the Internet economy.
Just last month, the Canadian Chamber released a report on engaging remote communities in Canada. As part of that report, the Chamber discussed the issue and challenges of broadband in the north. As we all saw recently when a satellite went out and knocked out vital communications to Nunavut, having a good, reliable connection to broadband in the north is a critical necessity.
Canada continues to be a world leader in many regards, including energy, natural resources, and the financial services sector. While the availability of broadband Internet access across Canada remains high, we've slipped internationally in ensuring that our digital infrastructure is world class. As a result, we put at risk our ability to attract and keep jobs in the global knowledge-based economy. ICT infrastructure is now a 21st century pillar. It must be given at least as high a priority as traditional infrastructure. We can't afford to be left behind.
Where do we go from here? Canada needs to create a true national ICT strategy in collaboration with business and academia. The federal government should accelerate investment in next-generation networks and take a more active role to encourage our youth to get engaged in ICT and entrepreneurship in innovative technologies. We also recommend that the federal government continues to work with the private sector to accelerate e-business adoption among SMEs and that the government create a more favourable investment climate that encourages foreign and domestic investment in Canadian e-business opportunities. Without proper investment and dedication to ICT adoption, innovation, and the protection of intellectual property rights, Canada's productivity will be limited and other nations will surpass us as a preferred destination for business investment.
Mr. Chairman, it's time for Canada to take back its proper place as a world leader in innovation and to invest in our future economic prosperity in the digital economy. I hope the hearings of this committee will help us to move in that direction.
Thank you, Mr. Chairman.
I hope that the hearings of this committee will help us to move in that direction.
Thank you, Mr. Chairman.