THE GROWTH OF SMALL BUSINESS TECHNOLOGY Many small businesses now rely on technology and the Internet to sustain and grow their markets, even as they increasingly rely on computers to perform daily duties. This increases their productivity without the need for additional resources. Small businesses that use the Internet have grown 46 percent faster than those that do not, according to several studies. Some 85 percent of U.S. businesses with fewer than 100 employees are PC users; more than 61 percent of them have Internet access. According to IDC, Internet infiltration by small businesses was high in 2001, with approximately 67 percent accessing the Web; 85 percent are expected to conduct business via the Web by the end of 2003. A private annual business study finds that some 35 percent of small businesses maintained a Web site as of 1998 and one-third of those did business transactions through it. Other estimates say that more than 1 million small businesses had a Web site in 1998, while in 1999 an estimated 2.3 million small businesses (with fewer than 100 employees) were online. Small business spending on IT has been consistent and increased over the last six years, as indicated by Figure 16.2. Figure 16.2. IT spending in small business continues to rise—despite economic uncertainty.[1] 
This IT spending trend is expected to continue and increase. Worldwide, small businesses are investing in information technology products, accessing the Internet, and conducting commerce online again in large numbers. Small businesses in Europe—specifically Germany, France, and the U.K.—spent approximately $106 billion on IT and telecommunications a year ago, while other small businesses worldwide spent about $450 billion on IT and telecommunications. | 
