SINGAPORE–More small and midsize businesses in Asia are planning to embark on online sales initiatives over the next 12 months, according to payments provider PayPal.

A recent study it commissioned revealed that 36 percent of SMBs which use the Internet for business are looking to establish an e-commerce site within the next 12 months. In addition, more than two in five (43 percent) of such companies are already engaged in e-commerce activities.

Conducted by Singapore-based Blackbox Research, the study surveyed 1,200 SMBs in India, Malaysia, Singapore and Thailand, of which the majority were established in the last 24 months. Respondents were from companies that had between five and 50 employees.

Mario Shiliashki, PayPal’s managing director and general manager for Southeast Asia and India, pointed out that SMBs in the region are feeling the pressure to look for new growth avenues in response to increased competition.

Speaking in an interview with ZDNet Asia, Thursday, he noted that e-commerce presented SMBs in the region with “exponential” growth potential by connecting them with a much larger customer base beyond their home markets. That could drive up revenue from online sales, which currently stands at about one-third the annual turnover of SMBs in the four countries.

“The economic downturn has been a kind of wake-up call for SMBs in finding new growth channels and realizing the power of e-commerce in driving new markets and new customers, and helping them stay ahead of the competition,” said Shiliashki. Read more ……

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