Small Businesses Embracing The Internet

Jan. 13, 2005
Small companies are overwhelmingly identifying the Internet as critical to the operation and management of their businesses, according to new research from International Data Corporation (IDC), an information-technology market research and consulting ...

Small companies are overwhelmingly identifying the Internet as critical to the operation and management of their businesses, according to new research from International Data Corporation (IDC), an information-technology market research and consulting company in Framingham, Mass. The IDC survey of 1,011 U.S. firms with fewer than 100 employees shows U.S. small businesses accessing the Internet increased from 19.7% in 1996 to 41.2% in 1998. IDC predicts Internet usage among small businesses will gain momentum, approaching 4.3 million small firms by 2001. The percentage of companies (with fewer than five employees) that access the Internet more than doubled from 1996 to 1997, climbing from 17.2% to 36.4%, respectively.

"Internet usage by company size can easily be traced to the PC penetration gap between larger- and smaller-sized companies," notes Warren Childs, research manager of IDC's Small Business Market program. "When just PC-owning companies are considered, Internet penetration tends to be relatively consistent across all size categories." As the deluge of low-cost, Internet-ready PCs continues, Internet penetration in smaller-sized companies will continue to expand, suggests Childs.

Other key findings from the survey:

  • Professional services (e.g., law firms, insurance agencies, real estate agencies, accounting firms) lead in Internet usage with 63% of PC owners online.
  • Retail and health care industries continue to lag in Internet use.
  • Internet users in manufacturing companies log onto the Internet most frequently and for the broadest range of applications.
  • PC-owning small businesses with home pages will increase from 9% in 1997 to 20.1% by 2001.
  • 36% of small businesses that plan to go online expect to use the Internet to sell products.
  • Less than 5% of small businesses access the Internet through any type of shared server.
  • Small businesses that use the Internet have higher revenues, averaging $3.79 million compared with $2.72 million overall.

Popular Sponsored Recommendations

Enabling Workforce Tracking and Process Optimization Through Secure Operator Authentication.

May 31, 2023
Operator identity is often a missing link in manufacturing data. To optimize plant processes, manufacturers need to know not only what machines and materials were used and at ...

How Digital Twin Technology is Empowering Manufacturers

Sept. 27, 2023
This FAQ delves into why this technology offers business value and considerations toward implementation.

Discrete and Process Manufacturing 2024 Trends and Outlook for North America

Oct. 29, 2023
Manufacturers are reaping the benefits of automation and cloud-based solutions. Discover what is driving today's industry trends and how they can shape your growth priorities ...

Legacy Phone Lines Are Draining Your Profits

Oct. 30, 2023
Copper wire phone line expenses that support emergency devices could be costing your company millions of dollars in wasteful overhead expenses. Rates have been skyrocketing while...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!