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Even with improved Internet connections, we still have low diversification of companies' online presence

*By Leonardo Melo Lins

The new version of search ICT Companies brought important news about Internet access infrastructure in the Brazilian productive sector. In 2023, 91% of companies stated that they have a connection via fiber optics, in a growth observed since 2017. It is important to mention that, on the supply side, in recent years there has been an increase in the number of Internet providers throughout the national territory, according to data from search ICT Providers.

Graph 1 – Companies with Internet access, by type of access in the last 12 months

Total companies (%)

One of the effects of this greater dissemination of optical fiber is the increase in download speeds for Brazilian companies: in 2023, 73% of Brazilian companies had connections above 100 Mbps, being well distributed across all sizes. Even in small companies, those with 10 to 49 people employed, it is possible to observe that the majority had connections above 100 Mbps. Therefore, data from TIC Empresas 2023 shows a notable improvement in Internet access infrastructure among Brazilian companies.

Graph 2 – Companies by connection speed and size, 2023

Total companies with Internet access (%)

Although there is an improvement in Internet connections, this does not reflect a diversification of companies' online presence. An interesting example is the ownership of websites: in 2023, 56% of Brazilian companies had a website, being more frequent among large companies. If we look at a longer series, it is possible to see that there is a stagnation in the proportion of small companies that had a website: in 2013, 50% of small companies had a website, a proportion that in 2023 was 52%. Therefore, in 10 years we have not observed an increase in websites among small Brazilian companies, revealing important obstacles to better exposure in the digital environment.

Graph 3 – Companies, by website ownership and size (2007-2023)

Total companies with Internet access (%)

It is worth comparing this pattern of website ownership in Brazil with other countries. In the graph below, it is possible to observe that the level of websites among small Brazilian companies is one of the lowest, behind several European countries with more complex economies. Countries such as Finland, Germany and Denmark have almost 100% of their companies with websites. The importance of the website is to give the company its digital identity, with the possibility of customization and provision of safe environments for electronic commerce. One of the most important assets of any market is trust, and the website can provide the company with a showcase and an environment to centralize information and transactions, providing the necessary security for customers and suppliers.

Graph 4 – Companies with website and size, Brazil and Europe (2023)

Total companies (%)

The data discussed above shows that there has been great progress in terms of Internet infrastructure among Brazilian companies. Most Brazilian companies, regardless of size, have connections via fiber optics and with speeds above 100 Mbps. This fact implies that with the connections available, it is possible for companies to seek to take more complex steps in the digital environment. However, what is observed is that having faster and more stable connections does not necessarily result in a more strategic use of the Internet. From the point of view of website ownership, there is a certain stagnation in the proportion of small businesses that have their own website, indicating challenges on how to proceed with more strategic digitalization.

After the moment of advances in infrastructure, it is necessary to think about ways to improve the digital capabilities of small Brazilian companies. The indicator on website ownership is timely, as it demonstrates difficulties in expanding a crucial and basic aspect for a company seeking to stand out in the digital economy. It's not that small businesses aren't present on the internet: for the most part, small businesses sell and interact on social media. The issue highlighted here is that most small businesses are online in channels in which they do not have autonomy, and it is important to understand the importance of maintaining an environment in which they are susceptible to the rules developed by others. With regard to the digital environment, it is important to occupy all spaces, but it becomes even more important to have a headquarters and a digital identity, in which the company itself makes the decisions.

*Leonardo Melo Lins is Researcher at the ABES Think Tank, member of the IEA/USP Post-Doctoral Program and Analyst at Cetic.br | NIC.br.\

Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies

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