Newsletter Signup


Contact Information

First Name* Address 1 City Email*
Last Name* Address 2
Zip Code
Phone
I currently do not have broadband
Why Not?
*Denotes required field

Recent News // Connect Michigan Releases Small Business Technology Report

Thursday, May 17, 2012

 

 

Report illustrates how small Michigan businesses increasingly rely on high-quality Internet connections to stay competitive and take advantage of growth opportunities

Lansing, MI — Connect Michigan today released Broadband: Empowering Small Businesses to Grow and Thrive. Data collected in this report indicates that small businesses are the core components for fostering economic vitality statewide.

The report is online at: http://www.connectmi.org/policy.

“Michigan businesses with less than twenty employees provide 30% of Michigan’s jobs,” said Eric Frederick, State Program Manager for Connect Michigan. “Broadband and technology can help these establishments remain prosperous and grow creating a stronger and more robust Michigan economy.”

Key findings from this report:

  • About two out of three Michigan businesses with fewer than 20 employees use broadband, which is significantly lower than among larger Michigan businesses
  • Fewer than one-half of small Michigan businesses have websites, and they are also significantly less likely to allow their employees to telework or use Voice over Internet Protocol (VoIP) to communicate compared to businesses with 20 employee or more
  • Nearly four out of five broadband-connected businesses with fewer than 20 employees (79%) go online to buy or place orders for products or services, the most popular online application among these businesses
  • Broadband-connected Michigan businesses with fewer than 20 employees report median annual revenues of approximately $300,000, compared to just $100,000 among similarly-sized competitors that do not use broadband
  • Statewide, nearly three out of ten (29%) businesses with fewer than 20 employees earn at least some of their revenues from online sales; on average these businesses earn about one-third (34%) of their revenues from online transactions
  • Statewide, businesses with fewer than 20 employees generate nearly $6.9 billion in online revenues for Michigan
  • Availability is the main barrier reported by one in ten small Michigan businesses that do not subscribe – this translates into approximately 6,000 Michigan businesses that could go online if broadband were available to them

The report was released today at the Michigan Collaborative Broadband Committee (CBC) meeting in Lansing.

The CBC is a group of representatives from K-12 education, higher education, broadband service providers, non-profits, tourism, business, agriculture, government, and other organizations that have an interest in improving Michigan’s broadband availability and encouraging meaningful adoption.

"High-speed broadband is an essential catalyst for the growth and expansion of small businesses here in the state of Michigan,” said Tremaine Phillips, Chief Program Officer with the Prima Civitas Foundation. “Cloud computing and telecommuting can greatly reduce the capital expenditures of small businesses and start-ups. While ultra-high-speed broadband is becoming increasingly available, businesses that are unable to utilize these tools are placed at a competitive disadvantage globally."

# # #

Download the Press Release