CANTON, Mass., - Opinion/Research...Small Businesses Lose Income Due to Tech Problems

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Small Businesses Report Lost Income and Clients due to Technology Problems

Story Filed: Wednesday, May 24, 2000 11:56 AM EST

CANTON, Mass., May 24, 2000 (BUSINESS WIRE) --

New Survey Shows Computer Problems Prevent Forty Percent of Small/Home Office Entrepreneurs from Conducting Business

A survey commissioned by TechKnow-How.com, a Web-enabled technology services firm, of small business owners (with 1-19 employees) found problems with their computer systems or the Internet over the past year caused them a significant loss in income and clients.

Twenty percent reported computer system and Internet technical problems have caused them to lose income over the last year. Of those 20 percent who lost income, the average amount of loss reported is $7,200 and the losses ran as high as one million. Twelve percent say that computer problems have caused them to actually lose clients.

Small and home-based offices employing less than 10 people represent a significant portion of the US economy totaling 5.7 million US firms, which accounts for three fourths of all US businesses, according to the US Department of Labor. In addition, there are 22 million income generating home offices. Based on these statistics and the average reported lost revenue related to technical issues from the survey of $7,200, projected losses are in the billions of dollars.

More than 90 percent of small businesses surveyed reported they lost time from computer hardware or software issues. Of those reporting lost time, 33 percent report that they lost either "a significant amount" or a "moderate amount" of time due to computer problems. Loss in time due to computers systems translates in actual loss in revenue to small businesses. The survey results show that computer problems prevented 42 percent of all small office and home office business people from conducting business in the last year.

In fact, 35 percent of the small office/home office businesses surveyed reported computer problems come up at least once a month.

The Small Business Association (SBA) reports that small businesses today create 75 percent of all new jobs. Small and home offices rely heavily on technology (92 percent reported computer systems and Internet connections are important to the success of their business), yet they lack the support of a large corporate IT department. In fact, nearly half of all small office/home office entrepreneurs turn to themselves or a friend, acquaintance or family member for computer support.

The survey points out entrepreneurs in small and home-based offices have to make tough decisions involving computer hardware and software purchases, while for many of them, this is not their primary area of expertise. The survey reports 79 percent of those surveyed make the decision when it comes to selecting office computers, Internet providers and new office technology themselves. While computers are not their primary areas of expertise, most are comfortable with IT equipment.

The survey asked small businesses if they felt a twenty-four hour per day/seven day per week technical service Web site that offered e-mail, chat, telephone and database support would be a valuable service and 83 percent replied this would be valuable to their business.

(Note on Survey Methodology: The survey was conducted by SWR/Della Volpe, a Boston, MA-based opinion research firm, during May, 2000. The sample of 536 is statistically valid, with a plus/minus 4.38 percent margin of error at the 95th percent confidence level)

http://library.northernlight.com/FB20000524860000025.html?cb=200&dx=2006&sc=0#doc

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-- (Dee360Degree@aol.com), May 24, 2000

Answers

Large businesses have suffered loses for years. The high tech industry has abysmal quality control. If car manufacturers put out products like these they would be out of business. Software companies are afforded extrordinary protection by the U. S. government.

-- K. (infosurf@yahoo.com), May 24, 2000.

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