The State of Technology

1. 1

   Fifty-eight (58) percent of small-business owners think that they are technologically abreast of their primary competitor(s) while 36 percent think that they are technologically more advanced. Just 2 percent think that they lag. However, only 62 percent employ high-speed Internet and 39 percent have interactive Web sites, suggesting that self-evaluations of their favorable technological positions are exaggerated.

2. 2

   Small employer views of technology and its introduction appear much more closely tied to industry than to employee-size of business.

3. 3

   Few small-business owners attempt to be among the first to work with new technologies. Most take a reserved approach to investing in them.

4. 4

   The most sophisticated type of technology employed in a small business is usually a computer(s) or computer software. Other technologies listed as the most sophisticated are often computer-driven or computers are otherwise intimately involved in their functioning. The enormous range of the named most sophisticated type of technology runs from nuclear cameras on one end to TurboTax software on the other.

5. 5

   The generic of the most sophisticated type of technology used is typically not new to the market. However, 72 percent claim to use the latest model, version, edition, etc. Still, small-business owners use their most sophisticated technology for reasonably long periods of time before upgrading. Just 18 percent need to upgrade within the year. Another 48 percent need to do so in more than one, but less than five years. Since owners may have already operated the piece of technology for several years, replacement occurs less frequently than cited above.

6. 6

   The most common reason to replace a technology is the desire to upgrade it.

7. 7

   Ninety-two (92) percent obtained their most sophisticated technology from outside the firm, most likely off-the-shelf. Six percent developed it in-house. Once obtained, however, 26 percent modified it; one in five of those altering the technology modified it substantially.

8. 8

   If small employers were to replace the most sophisticated technology they now employ, per unit costs for 26 percent would be less than $1,000. The cost per unit for another 48 percent would be between $1,000 and $5,000. Fifteen (15) percent estimate the cost would be $25,000 or more.

9. 9

   Forty-one (41) percent have a single copy of their most sophisticated technology and another 15 percent have two. Still, a substantial share of the workforce uses it (them). Over 60 percent report that it takes their most skilled employee less than one month to become proficient using the technology.

10. 10

    In the last year, 45 percent obtained new or significantly improved processes, equipment or software to produce or distribute its products or services. The most frequent of these was one or more pieces of software.

Volume 5, Issue 5, 2005
ISSN 1534-8326

William J. Dennis, Jr.
NFIB Research Foundation

• 7Does your business have it’s own Web site? Top 100
• 1In the last year, did your business use new or significantly improved processes, equipment or software to produce or distribute its products or services?
• 1aWas it one new or significantly improved process, piece of equipment, or piece of software, or was it more than one?
• 1bWas it a process, a piece of equipment, or a piece of software?
• 1cWas this new or significantly improved (process/piece of equipment/piece of software) new on the market or just new to your business?
• 1dDid this new (process/piece of equipment/piece of software) put you ahead of the competition, allow you to stay abreast of the competition, or let you catch up to the competition?
• 1eWhere did you get the idea for this (process/piece of equipment/piece of software)? Did you develop it from scratch yourself, upgrade or modify it based on what you saw somewhere else, or directly copy an idea you saw somewhere else?
• 2aIs this technology brand new on the market, or is it an upgrade from a prior model or version?
• 2bTo the best of your knowledge, how long has the basic technology been on the market?
• 2cHow long have you used this basic technology in your business?
• 2dTo the best of your knowledge, is the model or version you are using the most up-to-date?
• 2eDo all, most, a few, or none of your competitors use any model or version of the technology?
• 2fApproximately, how many pieces or copies of the technology, including all models or versions, do you currently use?
• 2gIf you were to buy the most recent version of the technology today, what would be the approximate PER UNIT cost?
• 2hHow long did it take the most skilled person using the technology to become proficient using it?
• 2iHow many employees use the technology?
• 2jHow much longer do you think you will be able to use the most sophisticated technology you currently operate before replacing it?
• 2j1Will you replace the technology primarily because:?
• 2kDid your firm develop this technology, OR did someone else develop it?
• 2lDid you modify the technology to meet your needs once you obtained it, OR did you leave it pretty much as you got it?
• 2l1Did you substantially modify or modestly modify the technology?
• 2mDo you own the technology, OR do you lease or license it?
• 3Do you believe that you have an overall technological advantage over your primary competitors, a technological disadvantage with them, or no technological advantage exists one way or another?
• 4Is the technology in your industry changing:?
• 5When it comes to new technologies in your business, how would you characterize yourself?
• 6Is your business connected to the Internet?
• 6aIs your connection to the Internet high-speed, which could be DSL, cable, satellite, etc., or is it a dial-up modem?
• 7aIs your Web site interactive in the sense that customers can reach you directly through it, place orders, or receive responses?