A Study of Small Business Technology Adoption and Utilization

Abstract

ABSTRACT Technology adoption could be a key factor in the ability for a small business to maintain profitability and weather the recession. In particular, green technology could not only reduce environmental impact but also lower energy costs. However, technology adoption costs could be too great for the typical small and medium-sized enterprise. Adoption costs often include changing plant equipment, acquiring new machinery and sometimes payment of intellectual and other property rights. Using a compiled database of small businesses across the country, the researchers developed and sent a survey questionnaire to 2,000 small businesses. Four hundred and fifty questionnaires were returned with 397 usable responses resulting in a 20% response rate. Results of this study could be important in providing information regarding whether small business owners would adopt new energy-saving technologies, not only to benefit the environment but also to reduce business operational costs and increase profitability. INTRODUCTION Small business owners across the country continue to seek new ways to improve profitability and remain competitive in the marketplace. At the same time, more small business owners want to be more environmentally friendly; not only to benefit the environment, but also because many grew up during the time when environmental concerns and awareness became more common among Americans. As green technologies continue to develop, smart business owners recognize investments made today could pay big dividends in the future. Energy prices may be low today, but the longterm outlook suggests energy costs could determine the ability of many businesses to maintain profitability. Will small business owners adopt new energy-savings technologies on their own or will it take grants, tax incentives and other actions on the part of government? Will small businesses assume debt to purchase these new technologies, recognizing technologies as an investment in the future of their business? DEFINITION OF TERMS Gazelles- is a business establishment with at least 20% sales growth every year from 1990 starting with a base of at least $100,000. (Case, 1996). Green Technology - Green technology, also referred to as clean technology or cleantech, is new technology and related business models offering competitive returns for investors and customers while providing solutions to global challenges (Bloomberg Business Exchange, 2010). Energy smart grid - is a form of electricity network utilizing digital technology. A smart grid delivers electricity from suppliers to consumers using two-way digital communications to control appliances at consumers' homes; this saves energy, reduces costs and increases reliability and transparency. It overlays the ordinary electrical grid with an information and net metering system, that includes smart meters. Smart grids are being promoted by many governments as a way of addressing energy independence, global warming and emergency resilience issues. (Department of Energy, 2010). Neighborhood effect - is one of the contextual variables that explains the tendency of a person to vote in a certain direction based upon the relational effects of the people living in the neighborhood. The voting preference of a neighborhood tends to be formed by consensus, where people tend to vote with the general trend of the neighborhood. This consensus is formed by the personal connections a person forms in a community. There also seems to be some socio-economic correlation to voting patterns, and this has also been used to predict voting behavior. (http://en.wikipedia.org/wiki/Neighborhood_effect). Smart Meters - A smart meter is a digital device that records the amount of electricity or gas you use and transmits this information to your utility provider. Smart meters allow flexible rates to be applied depending on time of use and ensure your utility bills are always based on actual readings rather than estimates. …

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