Only 33 percent of small businesses (1-99 employees) in China have a computer, according to a recent study by Access Markets International.

China’s low rate of PC penetration among small businesses, however, is higher than that of some other highly populous countries in Asia, namely the Philippines at 24 percent, India at 22 percent, and Indonesia at 18 percent.

About 40% of the non-PC SBs in India, over a third in China, and about a quarter each in Indonesia and the Philippines have expressed their intent to buy PCs in the next 12 months….

Most of the non-PC SBs in these four countries are small — with 1-9 employees each. The bulk of SBs in these countries belongs to the wholesale and retail vertical sector. The exception is China, where more than 50% of non-PC SBs are in the manufacturing vertical.

What hinders them from buying PCs? The primary hurdle is the belief that PCs are not relevant to their line of business. About 30% of non-PC SBs in India and 14% in China told AMI that they just have not thought about buying PCs. A significant portion of SBs believe that a simple fax and phone is enough for their business. Lack of knowledge about the installation and operation of PCs is also a powerful deterrence.

source: Huge untapped market for non-PC SBs opening up, AMI Partners, November 13, 2006

via Most Small Chinese Businesses Don’t Use Computers, China Tech News, November 20, 2006