01/04/2006
Small businesses in rural areas pay almost 10 percent more for broadband Internet service than those in urban areas, according to a 2004 NFIB National Small-Business Poll. While more than half of the 82 percent of small businesses with Internet access have a high-speed connection, rural small businesses continue to lag behind, according to new research from the U.S. Small Business Administration.
Though the number of employees can influence whether a small business utilizes broadband services, SBA research finds the high cost involved as the No. 1 reason for not adopting the technology.
Because it can cost more to install and service broadband products in rural areas, small-business owners are more likely to pay higher prices. Additionally, fewer subscribers mean fewer competitors – and higher market prices.
Despite the high cost involved, a high-speed Internet connection offers many benefits to the small-business owner. In rural communities with access to broadband, small businesses can expand their reach far beyond their traditional reach with digital marketing, advertising and sales. And, according to the SBA, a faster Internet connection can save both time and money for small business.
