The web becomes engrained in small businesses’ operations, new survey says

The Internet has become such an important part of the business plans for small companies that 96% plan to increase their investments in web-based initiatives, according to the Verizon SuperPages.com 4th Annual Small Business Internet Survey. While 40% of small businesses said they were less profitable this year than last and 40% managed to stay even with last year, 96% plan to maintain or increase their investments in their web businesses next year.

"Today's small businesses are beginning to treat the Internet as a standard marketing and advertising tool," said Patrick Marshall, group vice president, marketing of Verizon Information Services. "Our experience with our own small business customers underscores this trend."

Verizon SuperPages.com has experienced a more than 30% increase in customers this year, with the average amount of money each customer invested in an Internet presence increasing nearly 30% as well, the company reports.

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According to the survey, 41% of small businesses report an increase in their sales volume after launching a web site, and 55% of small businesses with a web site say their web sites have generated a profit or paid for themselves. Of the small businesses still without a web site, 26% report they definitely or probably will create web sites in 2003. Overall, 63% of small businesses intend to upgrade the functionality of their web sites, 54% will add a list of products or services and 53% plan to change the design of their web sites.

47% of small businesses with a web site report they are more satisfied this year with their web sites than last year, and 42% say their web sites exceeded or met expectations this year. "Small businesses that use the web to market their products and services outperform those that don't. The promise of the Internet is starting to pay off," Marshall said.

Verizon SuperPages.com is an online directory and provides web development and Internet advertising services for more than 100,000 small- to medium-sized businesses.

The Small Business Internet Survey consists of a random telephone survey of 500 companies in the United States that have 50 or fewer employees. Interviews were conducted in September.