If one enters the terms “broadband” and “economy” into Google’s search engine, it takes 0.25 seconds for Google to return 82 million results, the group says. Entering “broadband” and “jobs” returns 171 million results. Clearly, the role broadband has begun to play in the country’s economic future is a large one.

The national nonprofit group Connected Nation released data detailing the key role broadband plays in business performance and the implications for a continuing economic recovery. Connected Nation’s research shows that U.S. businesses generate $411.4 billion in online sales to consumers or other businesses, yet an estimated 1.8 million businesses remain unconnected to broadband.

“The economic impact of broadband is far-reaching and immense,” says Connected Nation Chief Policy Counsel Thomas M. Koutsky. “But our research shows that there is a significant broadband adoption and use gap among businesses in many important areas of the economy.”

Connected Nation surveyed of more than 7,000 businesses in Alaska, Florida, Iowa, Michigan, Minnesota, Nevada, South Carolina, Tennessee and Texas; its Business Technology Assessment was conducted as part of the State Broadband Initiative (SBI) grant program, funded by the National Telecommunications and Information Administration (NTIA).

Here’s what the surveys revealed:

>> Some 4.4 million U.S. businesses have Web sites, including more than 2 million businesses with fewer than five employees.

>> The median price paid per month for broadband by businesses is $68.32.

>> The median download speed among broadband-connected businesses is 4.9 Mbps.

>> Online sales account for $411.4 billion in annual revenues for U.S. businesses.

>> Nearly one in three businesses (32 percent) earn revenues from online sales. This translates into more than 2.4 million U.S. businesses.

>> Broadband-connected businesses bring in approximately $300,000 more in annual median revenues than non-broadband adopting businesses.

>> Minority-owned U.S. businesses account for $49 billion in annual sales revenues from online sales (or 12 percent of total online sales). A large percentage of minority-owned businesses report using broadband to handle some or all of their business functions (79 percent, compared to 76 percent of all businesses on average).

>> 32 percent of minority-owned businesses use the Internet to bid on job contracts.

>> Minority-owned businesses earn approximately $49 billion annually from online sales.

>> Teleworking also continues to have an impact in the marketplace, with 24 percent of rural businesses and 35 percent of non-rural businesses currently allowing employees to telework or telecommute. About 2.4 million U.S. business establishments allow employees to telework, including 1.5 million small businesses with fewer than five employees

>> More than 2.5 million U.S. businesses use the Internet to advertise job openings or accept job applications, including approximately 139,000 businesses that only accept online applications.

>> The Internet is a major resource for non-profits to find employees and volunteers, as 42 percent of non-profits advertise openings online.

Broadband And The Home-Based Business

Anecdotally, most Americans know of successful businesses begun by entrepreneurs operating from their own homes. Connected Nation data indicate that broadband and the Internet play a major role in how home-based small businesses conduct their operations.

Nearly two out of three home-based businesses (65 percent) communicate with their current customers online, and 59 percent (or 588,000) use the Internet to sell or advertise their wares. Not surprisingly, the percentage of home-based businesses allowing teleworking is higher than average at 55 percent.
 
Home-based businesses, however, do report challenges in robust broadband availability. An estimated 73,000 home-based businesses in the U.S. want to upgrade their broadband connections but report that the service available to them is too slow.

“These findings have important implications for all policymakers and business leaders,” concludes Connected Nation President and COO Tom Ferree. “Expanding broadband access, adoption and use is a proven driver of economic growth and is vital to ensure the United States’ place in the global digital economy.”

The Daily

Subscribe

TNT Tops Prime Again

Last week’s weekly ratings pyramid looks a lot like the previous week’s, with TNT in the top spot in prime (2.208 million P2+) and Fox News taking the #1 position in total day (1.193mln)

Read the Full Issue
The Skinny is delivered on Tuesday and focuses on the cable profession. You'll stay in the know on the headlines, topics and special issues you value most. Sign Up

Calendar

Jul 16
Diversity List – 2021 Nominations Due: July 16, 2021
Sep 10
Most Powerful Women – 2021 Nominations Due: Sept 10, 2021
Dec 7
Most Powerful Women CelebrationSave the Date!
Full Calendar

Jobs

Seeking an INDUSTRY JOB?
VIEW JOBS

Hiring? In conjunction with our sister brand, Cynopsis, we are offering hiring managers a deep pool of media-savvy, skilled candidates at a range of experience levels and sectors, The result will be an even more robust industry job board, to help both employers and job seekers.

Contact John@cynopsis.com for more information.