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Small Business eCommerce:
Paving the Way for the Next Generation of Opportunity

This informative paper presents the views of IDC and is provided as a resource for our customers. NetObjects did not create this document.
Adobe Acrobat 4 Reader.


New Research Predicts Small Businesses Will Be Key Driver in Growth of Internet Economy
Small Businesses to Invest Heavily in Internet Services as Web Sites Mature from "Show and Tell" to "Show and Sell" by 2004.

Redwood City, Calif., January 22, 2001 – Much of the growth in the Internet Economy will come from small businesses, according to the latest figures from IDC. “Small Business eCommerce: Paving the Way for the Next Generation of Opportunity,” predicts that small business e-commerce-related revenue will grow dramatically from $12 billion in 1999 to $110 billion by 2003.  This translates to an annual increase of roughly 75%.

The IDC white paper, sponsored by NetObjects, Inc. (NASDAQ: NETO), a provider of essential online services for small businesses, illustrates the market opportunities available for companies that not only help small businesses build an online presence, but help them reach the next level by establishing e-commerce capabilities. Coupled with IDC’s prediction that four out of five small businesses will be online by 2004, the firm estimates that Web-related investments made by the small office/home office industry will grow 45% annually, from $19.6 billion in 1999 to $85.4 billion in 2003. The rising interest in customizable solutions that, are easy to implement, manage and integrate supports the shift from the “show and tell” model to the “show and sell” model.

“Small businesses and home-based businesses have been key drivers of economic growth in the United States over the past decade, and are gearing up to take advantage of the Internet in a big way,” said Raymond Boggs, vice president, Small Business/Home Office Research at IDC. “These companies are most interested in readily available, easily deployable e-commerce solutions that let them work better with current customers and effectively reach new customers. The most successful solutions providers will offer flexible, efficient one-stop shopping for small business owners.”

Other highlights from the research paper include:

  • Small firms prefer doing business with a single supplier instead of several specialty suppliers. This saves them time by providing access to a portfolio of different Internet services that can easily integrate and scale to meet their needs.
  • There are currently 20 million home-based and small businesses that do not have a Web site.  However, the growth in Internet awareness, software and ISP support will catapult 50% of those without an online presence into the Web-enabled category by 2004.
  • Four out of five small businesses and home-based businesses will be online by 2004.

ll excerpts in the white paper are based on the small business population with less than 20 employees (6.7 million) and home-based businesses (18.8 million). The total population represents 25.5 million.

A complete copy of the "Small Business eCommerce: Paving the Way for the Next Generation of Opportunity" report is available in pdf form, which requires the Adobe Acrobat 4 Reader.

About NetObjects
NetObjects, Inc. (NASDAQ: NETO), an IBM affiliate (NYSE: IBM), is a leading provider of e-business solutions and online services. NetObjects partners with service providers to deliver the essential online services their small business customers need to leverage the power of the Web. More information about NetObjects and its products can be found at

For press inquiries contact:
Allison Green, NetObjects, Inc., 650-482-3637, 

© 2001 NetObjects, Inc. All rights reserved. NetObjects and NetObjects Fusion are registered trademarks, and NetObjects Collage, NetObjects Authoring Server and GoBizGo are trademarks of NetObjects, Inc. All other brand and product names may be trademarks or registered trademarks of their respective companies.



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