NATIONAL STRATEGY FOR INFORMATION SOCIETY DEVELOPMENT AND ACTION PLAN 22 2.2 E-BUSINESS …In a time of drastic change it is the learners who inherit the future. The learned usually find themselves equipped to live in a world that no longer exists… Eric Hoffer Electronic business stands for an innovative way of enterprise operations through active utilization of information-communication technologies and digitalization of business processes. Business and Governments in the developed countries are already undertaking steps that will ensure their own competitiveness on the national and global market through introduction of e-business. How fast the enterprises in the Republic of Macedonia introduce and react to changes in technology, partnership relations and relations with customers, shall be determined by their own success, and even their endurance in the contemporary business conditions. Attracting foreign direct investments and the export increase impose, more than ever, the Macedonian enterprises to change the way of operation, increase the ICT application and actively participate in the implementation of e-business in their operation. 2.2.1 Current situation By 31.12.2004, 165,977 business entities are registered in the Republic of Macedonia. Out of them 40,2 % are enterprises, 39,7 % are trade companies, 11,9 % are individual traders and 8,2 % others6, out of which 56,201 enterprises are operational. 98 % of these companies are small, and 2 % are large enterprises. There is no precise information on the number of enterprises that have and use the Internet access. More important facts characterizing the current situation in the e-business domain in the Republic of Macedonia are the following: • Large enterprises are implementing software solutions while making efforts to digitalize their own existing business processes at an enterprise level, whilst small enterprises implement partial solutions which digitalize certain functions or parts of functions, mostly finances and accounting; • Banks are in an initial phase of offering e-banking and providing payment transactions between banks and enterprises and between enterprises; • The number of payment cards issued by banks has increased, however, a large part of the cards cannot be used for payment via Internet; • The appropriate infrastructure for implementation of Public Key Infrastructure is existing, and the legislation for its support is in its final phase; • Several Internet-based shops have been established (office equipment, wide consumption goods…); • The new Law on Electronic Communications has adopted; 6 Source: State Statistical Office of the Republic of Macedonia (http://www.stat.gov.mk) NATIONAL STRATEGY FOR INFORMATION SOCIETY DEVELOPMENT AND ACTION PLAN