Power Surge

As the survey shows, entrepreneurs' use of technology is definitely up. More than one-third of surveyed business owners expect 1999 outlays for technology to increase, while just one in 20 expects a decrease. Internet-active companies expect to spend even more. Among specific technologies whose usage is expected to increase are upgrades to the Windows 98 operating system, which are planned by 74 percent of respondents.

Entrepreneurs credit technology with improving access to information, boosting productivity and streamlining communication, to list only the most important effects. The Internet is reported to have a powerful effect on sales. Owners who do business over the Net say it's responsible for 28 percent of total transactions. A majority--61 percent--say they have a Web site or will have one in the near future. And two-thirds expect Internet business to increase--not one respondent predicted a decrease.

Entrepreneurs moving onto the Internet are on the right track, says Azzi. At International Neon, Richard Pollock is developing a Web site he hopes to use to sell sign parts over the Internet. But that's just part of this forward-thinking entrepreneur's focus on technology. "We're going through a big upgrade to get everything Windows-based," he says. "We're already online with D&B, Visa and MasterCard. We know a Web site is going to take a long time to develop, but you have to get into it."

This article was originally published in the November 1998 print edition of Entrepreneur with the headline: Power Surge.