In spite of a growing interest in social networking, online transacting and using a Web page to promote their operations, the majority of small business owners still don’t consider use of the Internet as mandatory in running a small business in America today, according to research from Discover. Discover has been tracking the business concerns and economic confidence of America’s 22 million small businesses since 2006, and some key trends are emerging with regard to online resources.

The number of small businesses with their own Web sites has grown 36 percent in the past two years, but still fewer than half of owners have one. The number of small businesses that have Web sites grew from 33 percent in November 2007 to 45 percent in August 2009.

Forty-six percent of small business owners said it is a myth that every company should have a Web site, 44 percent felt the opposite and 10 percent were not sure. Consumers seem to agree. While 46 percent of them say that they expect every business will have a Web site, another 37 percent don’t think every company needs one. The remaining 17 percent weren’t sure.

When asked to choose from a list the biggest reason why they don’t have a Web site, 41 percent of small business owners said that their business doesn’t need one, 19 percent indicated “cost,” 16 percent chose “not enough time to monitor and manage,”10 percent selected “some other reason,” 9 percent said “complexity,” and 1 percent answered “not sure.”

The remaining 4 percent had no doubt: They chose the option: “My business will never need a Web site.”

Small business owners are increasingly leveraging online tools and resources to connect with customers and generate new business leads.

The number of small business owners who are part of a popular online social networking site has jumped from 22 percent in October 2007 to 40 percent in April 2009, and 40 percent of small business owners said this year that they have used e-mail to promote their businesses.

Nearly half of all owners said that they have used social networking sites to promote their businesses, and nearly a third of those owners said the biggest benefit of using these sites is getting new business leads.

As for consumers of small business products and services, 47 percent say they are more likely to use a business or a service if it has a web site and 43 percent would consider using a business that they heard about on a social networking group.

Source: Discover Press Release, December 16, 2009