Survey: Internet has little impact on small firms

However, companies expect the Internet to affect how they do business in the future

While the Internet continues to grow at an explosive rate, 79 percent of America's small businesses report feeling little to no impact from the global medium. Conversely, looking forward, more than 90 percent of those surveyed believe the Internet will have more of an effect on the way their company does business in the future.

These are among the key findings from the latest Sage Small Business Survey commissioned by Sage Software Inc., of Irvine, Calif., and performed by Fairfax Research Group of Ontario, Calif.

Spreading the word with the Web

As a promotional tool, small companies see 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 9 percent described the Internet as an effective promotional tool, according to a press release from Sage.

"Clearly, the survey data gathered shows that the vast majority of small business is optimistic and 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 operating officer of Sage Software, in the release.

"Effective use of the Internet is the key to success for small businesses. 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."

Small business on the Web

Nearly 70 percent of small businesses surveyed have corporate Web sites or have sites under construction. Further illustrating small businesses' optimism toward their future on the Web, of the 31 percent of companies without corporate Web sites, 65 percent plan to have sites 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 with Web sites spending less than $2,000 annually to keep it updated. Corporate Web site developers were evenly distributed, with 34 percent developed by in-house personnel, 30 percent developed by an outside vendor or consultant, and 36 percent developed by a combination of both.

Small business conducting e-commerce

America's small businesses are doing their best to keep up with moving into e-commerce. Of those companies that now have corporate Web sites, 29 percent already 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.

Small business' U.S. perspectives

Generally speaking, 80 percent of small businesses believe use of the Internet has led to productivity gains in U.S. businesses. Looking more broadly, 96 percent believe use of the Internet by U.S. small businesses will increase in the next five years.

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.