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NOVEMBER 1, 2000

IN BOX

Another Net Gain for Small Businesses
A new survey finds Internet use is continuing to soar


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The percentage of small business using the Internet has increased from 39% to 82% over the past year, according to a new study that also found online purchases by companies with less than 100 employees have doubled over the same period.

The survey of 700 companies, which was conducted by the Network of City Business Journals and American City Business Journals, reported that 44% of small companies plan to buy personal computers in the next 12 months, which would translate to sales of 8.7 million units. Other survey responses provided further evidence that the Internet, along with other high-tech devices, have now become integral parts of the small-business landscape.

"The increase in technology usage has had a profound impact on the way small businesses operate," says Bill Madway, the Network's research director. "It has allowed them to increase productivity, overcome labor shortages, and helped businesses to keep their costs under control. This is one of the main reasons we have not seen significant inflation in the U.S. as the economy has continued to soar.''



By Robin Phillips in New York

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