Survey Reports Small Businesses Moving Quickly to Conduct Commerce Over the Web - Industry Trend or Event

Cambridge Telcom Report, Oct 11, 1999

While the Internet continues to grow at an explosive rate, America's small businesses are doing their best to keep up with moving into e-commerce.

Sixty-nine percent of Internet-using small businesses report that they currently have a corporate Web site or one under construction. Of those companies currently with corporate Web sites, 29 percent are capable of conducting e-commerce activities. Of the remainder, 37 percent plan to have e-commerce capabilities in the future, 75 percent of those within the next 12 months. These are among the key findings from the latest Sage Small Business Survey commissioned by Sage Software, Inc. (www.sage.com), the leading provider of business accounting software solutions.

"Clearly, small business is optimistic about the future benefits of the Internet. The survey data shows that the vast majority is taking the steps necessary to reap the benefits of this global medium. But unfortunately, lining up the pieces is only half of the game," said David R. Butler, president and chief executive officer, Sage Software. "Effective use of the Internet to increase revenue is the key to success. It may not be enough to simply have a presence on the Web. Resources abound that can help small businesses identify where and how to get the greatest impact for their business, and many options are relatively easy and cost-effective."

E-Small Business - Feeling Optimistic Ninety-one percent of Internet-using small businesses report that they believe the Internet will have an increased effect on the way their company conducts business in the future. Looking more broadly, 96 percent believe use of the Internet by U.S. small businesses will increase in the next five years.

Illustrating small businesses' optimism toward their future on the Web, of the 31 percent of companies without a corporate Web site, 65 percent plan to have a site in the future, 82 percent of those within the next 12 months. Site maintenance costs appear to be manageable, with 47 percent of those businesses currently with a Web site spending less than $2,000 annually to keep it updated.

Small Business and the Internet - The Benefits Generally speaking, 80 percent of small businesses feel that use of the Internet has led to productivity gains in U.S. businesses. However, when focusing on their own business, 79 percent of small businesses in America currently report they have felt little to no impact as a result of this global medium to date.

Spreading The Word With The Web As a promotional tool, small business sees the Internet as having little current effect on their business, with 24 percent of respondents describing the Internet as ineffective and 43 percent reporting it as somewhat effective in promoting their business. Only nine percent described the Internet as an effective promotional tool.

Web Surfing On The Job Seventy-seven percent of small businesses say half of their employees have access to the Internet at work. Sixty-two percent express no concern for their employees' personal use of the Internet on company time,

yet 55 percent have either an informal verbal or formal written policy on Internet use for their employees.

Sage Small Business Internet Survey Accounting for more than 99 percent of employers in the United States, small business is the nation's largest employer group. The Sage Small Business Survey is based on responses from the owners, partners, presidents and vice presidents of 200 companies across the nation ranging from 10 to 500 employees and is conducted to better understand the issues small businesses are facing.

Headquartered in Irvine, Calif., Sage Software, Inc. (www.sage.com) is a wholly owned subsidiary of The Sage Group plc, the world's leading PC-based accounting software company, with more than two million customers. Sage Software markets five major accounting software packages. Peachtree, DacEasy and BusinessWorks are easy to use and provide the full accounting features needed by most small businesses of up to 50 employees. MAS 90 is the leading accounting software for medium-sized businesses with up to 500 employees, and is recommended by more CPAs than any other mid-range accounting product. Acuity is perfect for larger businesses of up to 1,000 employees, and for three consecutive years it has won Microsoft's Industry Solution Award for Best Technology Integration.

Sage Software established the Sage Small Business Survey program to better understand the needs of small business in the growing economy with past survey topics including Y2K readiness and satisfaction levels with government regulation.