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April 8, 2004
Study on How Small Businesses Are Using the Tools of the New Economy
Another great report from the US Department of Commerce. It's not new, but it's still relevant. I have qualms about using 6 year old data though - some of the data are from '98. Main Street in The Digital Age: How Small Businesses Are Using the Tools of the New Economy "Main Street in the Digital Age," examines the degree to which small- and medium-sized businesses are participating in the new economy. The term "new economy" was coined to describe an economy with surging productivity due largely to investment and use of information technologies like computers, software, and networks. If we are indeed in a "new economy," we would expect to see diffusion of these critical IT tools to businesses of all sizes throughout the economy. This report finds that small- and medium-sized businesses in every industry are investing in information technologies and exploring the potential of these technologies. However, this research also shows that the smaller the firm, the less it invests in IT equipment on a per-employee basis.
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