FinanceTechNews.com » Some small biz folks up tech spending

Some small biz folks up tech spending

November 30, 2009 by Valerie Helmbreck
Posted in: Budgets and spending, In this week's e-newsletter, Latest News & Views

Many U.S. small businesses put off technology purchases because of the recession, but a few are speeding them up to cut costs or be more efficient.

That’s the word from a recent Wells Fargo/Gallup survey. It seems that optimism in the tech sector is picking up lately, after the recession hurt demand across the sector. Many tech companies have posted stronger results and given encouraging outlooks recently.

In the survey, the majority of small-business owners said they’ve postponed spending on new computers, hardware and software. But around 13% said they’re pushing ahead with  purchases that will cut costs and make operations more efficient.

The most frequent tech use in small business is to connect with customers and conduct business, with 29% saying they use social networking sites for personal or business use.

Among those who use social networking sites, 45% say they promote or market their business or products on them. In the most recent survey, half say they have Web sites, and half of the companies with sites accept credit cards online, up from 44% and 46%, respectively, in 2007.

Small-business owners report using the Internet for various business purposes ranging from obtaining information to managing their business and personal finances. And 75% of small-business owners regularly gather information as well as business and industry advice online.

Other primary uses include online banking (58 percent), social networking to make professional contacts (50%), advertising and marketing (45%), and payroll management (22%).

Results are based on telephone interviews with 602 small U.S. business owners conducted Oct. 5-9 and have a margin of error of plus or minus four percentage points.

To read more about the survey, visit here.

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