Microsoft Talk

Global study of small businesses reveals growing demand for software as a service.

The research highlighted that many small businesses struggle to compete with big businesses and are unsure of how to get access to higher-quality IT services that could help them. Government support is often widely used and well-received, but in some cases, it is thought to be too limited. Small businesses face numerous challenges with IT but are also seeing the benefits that mobile working and social networking can bring.

Despite global concerns about an economic slowdown, most small businesses reported that they had performed well in the past year. Globally, 39 percent of businesses had grown, while 36 percent had remained steady in the past year. Hosted IT solutions appear to offer some of the answers raised by the small businesses surveyed. Not only does buying software on a subscription basis reduce the reliance on IT skills and offer enterprise-class security protection, but it enables businesses to focus on other business priorities.

The research also highlighted that some emerging markets are outpacing western countries in terms of new technology adoption. About 87 percent of Russian small businesses surveyed have branded company e-mail, while 63 percent have a customer database and an above-average 24 percent use mobile e-mail. Similarly, Russian small businesses are the most likely to have IT (97 percent), while fewer (91 percent) U.S. small businesses used IT.

Meanwhile, 67 percent of Chinese small businesses use social networking applications to talk to existing customers and 57 percent use them to promote their business. That compares with just 26 percent and 24 percent, respectively, of small businesses in the U.K. — typically seen as a mature market — that use social networking to talk to existing customers or promote their business. The research also found that 65 percent of the small businesses surveyed would consider buying IT services on a subscription basis, such as hosted e-mail, shared calendaring and other applications.

“Despite their varying businesses and greatly differing needs, many small businesses are becoming increasingly dependent on information technology and the Internet for networking, communications and sales. As they become more Web-savvy, we’re seeing that small businesses are starting to seriously consider hosted services to meet some of their IT needs,” said John Zanni, general manager, Software + Services Industry team, for the Communications Sector at Microsoft. “At this time of economic uncertainty, the benefits of buying IT services on a subscription basis become ever more apparent.”

The research, which surveyed small businesses’ attitudes on a range of areas, also found that many have “IT envy” for the resources of larger businesses. A vast majority — 79 percent — think that larger businesses gain significant advantage from having access to better IT resources. Despite this, 37 percent still use Web mail, such as Hotmail, Gmail or Yahoo! services, rather than business e-mail services such as Microsoft Hosted Exchange.

Meanwhile, small businesses’ main priority — managing relationships and customer service — was found to be highly dependent on IT, because 89 percent of firms also agreed that professional communications are important to their business.

Free event offers expert advice, new product offers with today’s concerns in mind.

Beginning today, Microsoft Corp. hosts its fourth annual Microsoft Small Business Summit. This free, virtual gathering will feature more than 35 experts offering small businesses valuable information and insights on topics ranging from marketing and finance to productivity and technology. Broadcasting live to more than 370 syndicated Web sites and partner sites from Microsoft Studios, the Small Business Summit will reach more than 1 million small businesses worldwide during the three-day event. Summit participants can connect with each other and partners for recommendations during topical seminars and use new interactive components such as Twitter (http://twitter.com/sbsummit) and a live chat room located at http://www.sbsummit.com.

“With the issues of today’s complex global economy, the Small Business Summit is more important than ever,” said Bill Rielly, marketing director of U.S. SMB Solutions at Microsoft. “Small businesses want to learn what they can do to keep up with their larger competitors. We are blending key presenters from our March 2008 event with a new lineup of experts that will share tips and strategies for small businesses to remain competitive and operate efficiently.”

Expert Advice on Riding the Economic Seas

One of this year’s featured speakers is Nell Merlino, co-founder, president and CEO of Count Me In for Women’s Economic Independence, the leading national not-for-profit provider of resources to help women grow their microbusinesses into million-dollar enterprises. During her summit segment — as well as in a separate podcast available at http://www.sbsummit.com and various online outlets including the Count Me In Web site, http://www.countmein.org — Merlino will share advice for maintaining and growing a small business, especially in tough times. For example, she will recommend ways for small businesses to be more valuable by aligning with customer needs and give tips on how to streamline operations with information technology for greater efficiency.

Summit participants also will hear from peers about what measures they are taking to stay afloat and be successful in a down economy. These peer presenters will include winners of the Microsoft Bump the Slump contest. The contest, held July 31, 2008, to Oct. 1, 2008, recognizes small-business owners who provided the best tips in one of three categories: IT, marketing and general business. Three of America’s top small-business experts, Steve Strauss, Rieva Lesonsky and Jeff Wuorio, judged the tips in each category based on their clarity, application and potential business impact. Clay Johanson, Matt Lewis and Pamela Viveiros were selected as the award winners. In addition to the opportunity to present at the Small Business Summit, the winners in each category also received $25,000 in Shell gas cards.

Green IT solutions can bring small businesses cost savings.

Small businesses increasingly rely on technology to help the environment and save money, according to results of a survey released today. Findings show that 60 percent of small-business decision-makers save money by using sustainable technologies.

The telephone survey — conducted on behalf of Microsoft Corp. by KRC Research — of 250 small-business IT decision-makers nationwide discovered a growing focus on environmental concerns. Thirty-eight percent of respondents reported that their companies are more focused on being environmentally friendly than they were one year ago.

An overwhelming majority (69 percent) of respondents reported that environmentally friendly practices are important for their business. When it comes to methods for greening their business, 94 percent of those surveyed also believe technology is an important tool to help accomplish that goal.

“Technology can play a significant role in helping businesses lower their impact on the environment,” said Francois Ajenstat, director of environmental sustainability at Microsoft. “Microsoft helps by reducing the energy consumption of technology, helping manage environment footprint and rethinking business practices. This enables organizations to improve both their bottom line and the sustainability of their operations.”

The survey results reveal practices that small businesses see as most beneficial for the environment. Respondents identified a paperless office as the No. 1 green IT practice they feel also offers the greatest cost savings.

One survey participant, Joseph Hommel, chief operating officer and co-owner of Maui Office Machines and Furnishings, considers environmental practices for his business a natural extension of his personal lifestyle.

The survey results highlight sustainable practices that small-business decision-makers believe represent the most savings potential for their business including the following:

• Setting up standards to manage power consumption for computers, such as setting computers or monitors to sleep mode after a period of not being used (28 percent)

• Allowing employees to telecommute (26 percent)

• Upgrading server infrastructure with the most energy-efficient technology available (16 percent)

• Using mobile technology (15 percent)

• Conducting live meetings that share resources over the Web such as presentations (14 percent)

for Nation’s Top Home-Based Businesses for Second Annual “Home-Based 100”

StartupNation (http://www.startupnation.com) and Microsoft Office Live Small Business (http://www.smallbusiness.officelive.com) have launched the second annual “Home-Based 100” to find the top home-based businesses in the country. Home-based businesses interested in making the list can submit their business profile at http://www.startupnation.com/homebased100, with results to be announced in November.

According to the Small Business Administration, over half of all U.S. businesses are based out of an owner’s home, and home-based businesses contribute more than $530 billion to the U.S. economy each year. With more than 19 million entrepreneurs currently running a business from home, most experts believe this trend is at an all-time high.

“2008 is the year of the home-based business. While home businesses have long been the backbone of the U.S. economy — surpassing more than half of all businesses — this year’s economic pressures have accelerated this trend and fueled a new crop of home-based entrepreneurs,” said Rich Sloan, co-founder of StartupNation LLC and one of the country’s leading small-business experts. “Our 2008 ranking of home-based businesses will showcase these unsung heroes of entrepreneurship and demonstrate that home is not only where the heart is, but also where passion, drive and tomorrow’s business success stories live.”

The StartupNation Home-Based 100 is composed of 10 top-10 lists making it not just an ordinary business list. Including the grungiest, the most innovative and the best financial performers, the unique and diverse list highlights the home-based businesses that are often unrecognized, but which still play a vital role in the economy today. The 10 categories for 2008 follow:

• Best Financial Performers

• Most Innovative

• Boomers Back in Business

• Greenest

• Yummiest

• Wackiest

• Grungiest

• Recession Busters

• Most Slacker-Friendly

• Most Glamorous

Check out fellow blog Dealing with Headaches.