Broadband Saves Entrepreneurs More Than $16,000
IIA and SBE Council Release Report on Top 10 Ways Broadband Saves Solo-Entrepreneurs Money, during the Start-up Phase and in Yearly Savings
WASHINGTON, D.C. - April 18, 2012 - When pursuing the American dream of starting a business, new entrepreneurs save $16,550.52 with high-speed broadband Internet, according to the report “Start-Up Savings: Boosting Entrepreneurship through Broadband Internet,” today released by the Internet Innovation Alliance (IIA) and the Small Business and Entrepreneurship Council (SBE Council). The analysis looks at the top 10 ways broadband creates significant savings for a solo-entrepreneur - not only during the start-up phase but also in yearly savings.
“Entrepreneurs fuel the economy and job growth,” said Karen Kerrigan, President and CEO of SBE Council. “Fostering U.S. innovation, particularly in the technology sector, is critical to ensuring our country’s continued global leadership and economic competitiveness. Broadband connectivity, particularly through mobile devices, is propelling entrepreneurs and new businesses responsible for creating millions of new jobs every year.”
According to the Kauffman Foundation, young firms were responsible for nearly all the net job creation in the United States between 1980 and 2005. Kauffman estimates that new firms create approximately three million jobs each year, and have created 40 million new jobs since 1980.
Broadband is lowering the cost and barriers to entry for starting a new business, and access to this powerful resource provides entrepreneurs innovative tools, new networks and business opportunities. Below are the top 10 ways high-speed Internet, including wireless broadband, saves American entrepreneurs money.
Top 10 Ways Broadband Saves American Entrepreneurs Money
|Category||Traditional||Online||Amount Saved on Start-up Costs||% Saved|
|Accounting: Online Services and Software vs. Traditional Accountant Services||$2,101.00||$267.30||$1,833.70||87.28%|
|Website Design and Hosting||$2,397.84||$299.64||$2,098.20||87.50%|
|Mobile Apps and Business Owner’s Time||$35,027.20||$31,524.48||$3,502.72||10.00%|
|Office Space vs. Home Office||$6,180.00||$0.00||$6,180.00||100.00%|
|Incorporating a Business||$394.67||$98.67||$296.00||75.00%|
|Travel Costs: Air Travel vs. Online Video Calls/Conferencing||$1,083.00||$59.88||$1,023.12||94.47%|
|Cost of Broadband Connection||$490.00|
|Total Saved, with Broadband||$16,060.52|
Savings may also be greater for businesses that tap into broadband for a host of other needs not covered in the study, including purchasing equipment and furniture, utilizing cloud services, or marketing products and services.
Broadband-enabled savings, as identified by the analysis, are important for several reasons:
- Reducing costs associated with starting a business lowers barriers to entrepreneurship.
- Money and resources saved in one or several areas mean capital can be deployed or invested in revenue-generating activity.
- Access to capital continues to be tight, so every penny saved counts in helping new businesses preserve capital for new investments, staff or other needs that will help them survive and remain competitive.
“Broadband is an invaluable tool that allows entrepreneurs to pull America up by her bootstraps,” said Bruce Mehlman, co-chairman of the Internet Innovation Alliance and former Assistant Secretary of Commerce for Technology Policy. “Yet too many communities are still without high-speed Internet or lack robust service; universal broadband deployment must be a top priority for our nation, and this goal is best met through policies that allow the markets to work.”
Mehlman continued, “Now more than ever we need more spectrum in the hands of those actually serving our entrepreneurs, to ensure robust and reliable Internet service. Policies that allow the markets to deploy these resources to their highest and best use, rather than politicians’ preferences, will lead to a stronger entrepreneurial ecosystem - that means more innovation, more jobs, more cost-savings for consumers and more start-up businesses in the United States.”
To access the full report, view our rolling infographic and download a printable, informational palm card, visit http://www.internetinnovation.org/small-biz.