Seventy percent of small businesses either have or will have an online presence by the end of 2004, according to a recent Yahoo! Small Business (http://smallbusiness.yahoo.com) survey conducted by Harris Interactive(R). By comparison, in October 2002, only 35 percent of small businesses had developed their own web site, according to a Small Business Administration report*.

The Yahoo! Small Business survey, released today in conjunction with National Small Business Week, provides results of a national survey of more than 1,000 U.S. small-business owners and measured business-growth trends faced by owners of businesses with less than 100 employees.

"Clearly, small businesses realize the importance of establishing an online presence and leveraging the Internet as a way to reach new customers," said Rich Riley, vice president and general manager, Yahoo! Small Business. "Yahoo! Helps small businesses take advantage of this opportunity by offering a comprehensive suite of services including web hosting, business email, e-commerce functionality and online marketing."

Additional findings of the survey include:

Small Business and the Economy

The survey found that 35 percent of small business owners feel that having a web site is key to expanding their business, compared to 19 percent of owners who believe hiring additional employees is important for growth.

- - When asked how beneficial each of the following activities are (or would be) for the growth of their business, respondents offered the following, in order of importance:

- - Having or establishing an online presence (35%)

- - Having or obtaining dedicated business email (30%)

- - Increase online advertising effort (30%)

- - Hiring more employees (19%)

- - Most respondents (94%) feel that small businesses have a "moderate" to "very large" impact on the country's economic growth.

Revenues for 2004

While the majority of those who responded plan to see an increase in sales, more online businesses expect to experience growth than those businesses that are not currently online.

- - Approximately two-thirds of total respondents predicted their annual revenue will rise in 2004.

- - Of these respondents, 75 percent currently have an online presence.

Harris Interactive Methodology

The Yahoo! Small Business survey, conducted online by Harris Interactive(R), is based on responses from 1,020 U.S. adult consumers between April 22 and April 26, 2004 and has a statistical precision of plus or minus three percentage points.

About Yahoo! Small Business

Yahoo! Small Business (http://smallbusiness.yahoo.com) is a leading provider of services enabling small businesses to be successful online. In a powerful one-stop shop, Yahoo! Small Business provides a comprehensive, easy-to-use suite of services that enable small businesses to get online, sell online and market online. Yahoo! Small Business provides services such as Yahoo! Web Hosting, Yahoo! Merchant Solutions, Yahoo! Domains and Yahoo! Business Mail.

About Harris Interactive(R)

Harris Interactive (www.harrisinteractive.com) is a worldwide market research and consulting firm best known for The Harris Poll(R), and for pioneering the Internet method to conduct scientifically accurate market research. Headquartered in Rochester, New York, Harris Interactive combines proprietary methodologies and technology with expertise in predictive, custom and strategic research. The Company conducts international research from its U.S. offices and through wholly owned subsidiaries -- London-based HI Europe (www.hieurope.com), Paris-based Novatris and Tokyo-based Harris Interactive Japan -- as well as through the Harris Interactive Global Network of independent market- and opinion-research firms. EOE M/F/D/V

* "E-Biz: Strategies for Small Business Success," by Joanne H. Pratt, SBA Office of Advocacy, October 2002