An additional $200 billion in economic growth could be achieved if minority-owned and women-owned small businesses were to increase their use of computers, according to a survey of 1,100 businesses, 75 percent owned by women or minorities, in six major U.S. cities, including Chicago.
The survey, conducted by the Urban Institute and funded by Microsoft Corp., found businesses that made extensive use of computers and other information were significantly more successful, experiencing substantial increases in productivity and profitability.
While many businesses reported using computers in their accounting, for e-mail and interaction with customers, fewer than half reported having their own Web site. Only the most successful businesses use technology to improve operations and product delivery and to impose financial controls.
“By showing that productivity is enhanced with more extensive use of computers, this study suggests one way to help more minority-owned and women-owned business succeed,” said Robert Lerman, a senior fellow at the Urban Institute and professor of economics at American University.
Group lobbies for equipment benefit
The National Federation of Independent Business is suggesting that Congress make permanent a provision that allows small firms to deduct up to $100,000 of equipment purchases per year from their federal income tax.
The temporary tax provision was adopted last year as part of a tax-cut plan pushed by President Bush. The benefit is set to expire at the end of the year.
The provision could help the economy continue recovering and improve prospects for the nation’s technology industry, according to Jack Faris, president of the federation.
Conference aims to connect sectors
A conference designed to spotlight ways that business, government and universities can work together more effectively to foster economic development is scheduled for next month at Case Western Reserve University in Cleveland.
The April 23-24 conference is sponsored by the Office of Advocacy of the Small Business Administration, the Center for Regional Economic Issues at Case Western Reserve University and the SBC Foundation.
The program is designed for business leaders and chamber of commerce executives; academic leaders involved in fostering better links between business, university and government; and public officials involved in regional development. It aims to provide information about ways schools, governments and businesses combine to create entrepreneurial networks and to offer practical ways to strengthen connections.
Go to www.weatherhead.case .edu/rei/sba.htm for details.
