Entrepreneurs Lead Transition to Online Business Activities

Research report finds engagement in Internet activities positively affects young companies’ capitalization, sales, and survival. The Internet’s profound effect on how U.S. businesses operate is even more pronounced among young companies, according to a research report released today by the Kauffman Foundation. The study, “Casting a Wide Net: Online Activities of Small and New Businesses in the United States,” reveals that new businesses have a higher propensity to use websites, email, and to sell online, and that these inclinations have an impact on capitalization and longevity.

The research compares data from the Kauffman Firm Survey, which follows 4,928 firms from their founding in 2004 through 2009, with recently released data from various government sources on businesses overall.

While adoption and use of online activities differed depending on the business type, owner characteristics, industry, and other factors, the study showed that new businesses tended to implement e-business activities at higher rates than existing businesses did.

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Source: Kauffman Foundation Of Entrepreneurship