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Small Business Online

In 2005:
Small businesses with Internet access ...........................................................................72.6%
Small businesses with high speed access ......................................................................48.4%
Have a home page (% of online small businesses) ........................................................80.5%
Conducted e-commerce (% of online small businesses) ................................................22.6%

Source: IDC, "U.S. Small Business Internet 2005-2009 Forecast," March 2005

Larger businesses are more likely to have a home page.
Home Page Use by Company SizeHome Page Use by Company Size
Source: IDC, "U.S. Small Business Internet 2005-2009 Forecast," March 2005
How small businesses promote their products online:

Company website ..........................................................................................................44.2%
Email marketing .............................................................................................................34.4%
Videos/still pictures on website ..................................................................................16.7%
Banner ads .....................................................................................................................10.0%

Source: IDC, "Marketing and Promotion in U.S. SMBs," July 2004

Small Business Website Development Method

"Do It Yourself" (net) ..........................................................................................................82.2%
Standard off-the-shelf software for use on PC ............................................................55.9%
HTML editor.........................................................................................................................35.7
% Basic templates provided by others .........................................................................12.5%
Basic template provided by ISP.......................................................................................7.6%
Browser-based applications provided by ISP or others ............................................2.1%
"Do It For Me" (net).............................................................................................................24.6%
Website design firm/consultant......................................................................................17.1%
Friends/others ....................................................................................................................5.0%
ISP or ISP partners ............................................................................................................3.0%
Service provider that provided name registration and other services.......................1.0%

Source: IDC, "Web Site Development in U.S. Small Businesses," June 2004

Small-Business Website Locations

Website Do It
Yourself
Do It
For Me
On server owned by company 29.4% 33.1% 15.1%
Other third-party (e.g. Interland and Verio) 24.9% 26.2% 24.6%
Space purchased from ISP 23.9% 24.1% 18.7%
Space provided by ISP at no extra charge 13.1% 10.8% 20.4%
Service from firm that created site 5.0% 1.2% 20.2%
Free service (but not from ISP) 3.7% 4.6% 1.0%

Source: IDC, "Web Site Development in U.S. Small Businesses," June 2004

E-Commerce Focus: Products or Services?

All SBs Web Site Do It
Yourself
Do It
For Me
Products only 9.9% 10.2% 5.7% 26.7%
Primarily products, but some services 23.8% 25.5% 24.7% 24.2%
Divided roughly between products & services 17.2% 19.3% 19.2% 13.6%
Primarily services, but some products 22.1% 23.2% 26.5% 16.4%
Services only 27.0% 21.8% 23.9% 17.2%

Source: IDC, "Web Site Development in U.S. Small Businesses," June 2004

Source: SBA, "Small Business by the Numbers," May 2002
*Businesses with employees


The Small-Business Market

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