OCTOBER 16, 2002

IN BOX

New Tacks for Tough Times
Thanks to the Internet's ability to broaden sales, a new survey finds small-business owners surprisingly positive about the future


  STORY TOOLS
Printer-Friendly Version
E-Mail This Story

POLL INSTANT SURVEY >>
My company provides sexual-harassment prevention training:

Periodically
Once, when the employee is hired
Never
Not sure

VIEW POLL RESULTS >>
  PEOPLE SEARCH

Search for business contacts:

First Name :
Last Name :
Company Name :

PREMIUM SEARCH
Search by job title, geography and build a list of executive contacts

Search by Zoominfo
A wobbly Wall Street, earnings estimates down, corporate scandals, and the specter of war. The summer of 2002 was short on optimism. Right? Well, apparently the gloom didn't extend to all sectors of the economy. According to the results of a survey that set out to calibrate the mindset of industrial small businesses, some 75% of the 5,000 outfits that responded are convinced that the next 12 months will witness bottom-line growth -- fully one third believing they can expect "significant" expansion.


Those upbeat findings can't be dismissed as mere wishful thinking. When the survey, sponsored by Thomas Regional Directory and MasterCard, asked respondents to explain their optimism, the most common response was an evolving faith and focus on ways in which the Internet allows entrepreneurs to define and exploit fresh opportunities.

Some 29% of respondents running businesses with six or fewer employees reported that they had established online sales operations, with 40% reporting increased Web sales, vs. the previous 12 months.

NEW DIRECTIONS.  That's not to say tech is seen as an automatic salvation. Business owners were frank in admitting that adjusting to the gloomy economic climate would require changes in strategy. For 54%, the primary goal in 2003 will be preserving profits by keeping costs down. The only difference of opinion concerned the best way to boost revenues: 56% planned to weather the economic turbulence by the simple expedient of increasing existing sales and 44% planned to concentrate on opening fresh markets.

The most striking trend, however, is the way in which business owners regard the Internet as the primary means of finding new customers and providing better service to existing ones. Some 80% already buy goods and services online, citing shorter delays to delivery (57%), convenience (56%), and savings (32%) as the greatest advantages.

"The Internet has proven to be a lifeline for industrial small businesses, allowing them to reach new audiences in a cost-effective manner," says Eileen Markowitz, Thomas' president. "As more products and services become available online in the coming year, we expect to see an increase in online activity, not only in sourcing information, but in e-commerce and requests for custom work."



By Roger Franklin in New York

Get BusinessWeek directly on your desktop with our RSS feeds.XML

Add BusinessWeek news to your Web site with our headline feed.

Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video.

To subscribe online to BusinessWeek magazine, please click here.

Learn more, go to the BusinessWeekOnline home page

Back to Top

OCTOBER

TODAY'S MOST POPULAR STORIES

  1. Chrome vs. Android
  2. Can You Afford to Retire?
  3. The New Criterion for MBA Admissions
  4. GM's Turnaround Rides on a Successful Chevy
  5. Banks Turn the Screws on California

Get Free RSS Feed >>
  MARKET INFO
DJIA 8146.52 -36.65
S&P 500 879.13 -3.55
Nasdaq 1756.03 +3.48

Portfolio Service Update

Stock Lookup

Enter name or ticker



Media Kit | Special Sections | MarketPlace | Knowledge Centers
McGraw-Hill Cos.