Entrepreneurs Under 40 Rely Heavily on the Internet and Social Networks to Stay Connected in Today's Business World

NEW YORK, June 6, 2011 /PRNewswire/ -- Portfolio.com, the national business news site for small and mid-sized business (SMB) executives and entrepreneurs, today unveiled a new study revealing the mindsets and business practices of SMB owners under the age of 40, most of whom could be labeled as entrepreneurs. The findings of the proprietary study conducted by The Business Journals illustrate how young business owners are leveraging new technology, social media and the Internet to increase productivity and stay connected to their businesses and critical business information.

"Over the next 10-15 years, we're going to see these young entrepreneurs become the leaders and influencers of the SMB market, making it critical for brands to better understand this growing group's business needs," said J. Jennings Moss, Portfolio.com's editor. "It's clear from this study that business owners under 40 want products and services that allow them to be connected 24/7 to stay on top of their companies, not to mention the rest of their lives, at all times."

According to the study titled SMB Insights 2011: Young Entrepreneurs Under 40, half a million SMB executives under the age of 40 in the United States. Top of mind for these young business owners are the future prospects for their companies and how to best use technology for business and personal use. Those entrepreneurs and SMB executives under 40 have been exposed to technology throughout their entire lives and use an array of technology products and services like Wi-Fi, VoIP, cloud computing and apps, to a greater extent than their 40+ peers.

The study also found that those under 40 have adopted social networks in both their personal and business lives, with 88 percent currently using social networking sites, and 70 percent using a social network as part of their business marketing programs, compared to 68 percent and 47 percent respectively among executives over 40. Additionally, young entrepreneurs prefer Facebook and LinkedIn over Twitter for both business and personal use.

When it comes to the Internet, 79 percent of SMB executives under 40 consider themselves expert Internet users, compared to only 41 percent of those 40 and older. They're using the Internet for a variety of business activities including buying business products or services (70 percent), keeping in touch with colleagues and friends (70 percent) and collecting information about competitors (50 percent), among others. Additionally, 62 percent turned to the Internet for education and training, compared to 48 percent of SMB executives over 40.

"Young entrepreneurs have been exposed to social networks for quite some time - roughly eight years or more - and it has become second nature for them to use these platforms to connect with colleagues and customers," said Godfrey Phillips, Vice President for Research at The Business Journals. "The Internet is their central resource for traditional applications, and they turn to alternative media like YouTube, Foursquare and Twitter to connect with and attract new prospects."

According to the study, SMB leaders under 40 also understand and appreciate the benefits of wireless technology with the majority (68 percent) believing that it is critical to be able to access business information outside of the office, and 63 percent staying connected to their businesses via computers, smartphones or iPads for at least eight hours a day.

Additional key findings include:

• The average age of an SMB executive under 40 is 34 years old
• 48 percent of entrepreneurs under 40 are in top management positions such as Owner/Co-Owner, President and C-level
• 58 percent of entrepreneurs under 40 are more concerned with spending time with family, compared to 44 percent of their 40+ peers
• 74 percent of young entrepreneurs agree that technology has greatly increased business productivity
• 83 percent of young entrepreneurs agree that the Internet is one of the most valuable business tools
• 43 percent of entrepreneurs under 40 believe social networking sites are valuable resources for business growth, while only 28 percent over 40 echo the same sentiment

The study was conducted by The Business Journals from November 2010 to January 2011 and more than 2,223 SMB executives with 1-499 employees were interviewed. Earlier this year, Portfolio.com published findings from The Business Journals' "SMB Insights 2011" market study, revealing that SMB owners are seeing a new economic reality unfold with a majority believing the U.S. economy will not regain its former economic position, but are staying more e optimistic about their business prospects than during any other point in the last two years. In addition, the report revealed that SMB owners are accelerating the shift away from desktops and laptops, and moving toward the latest technology and gadgets such as smartphones and tablets.

About Portfolio.com

Portfolio.com is the national business news site for small and mid-sized business executives and entrepreneurs. Comprising original, in-depth reporting, thought-provoking insights, colorful features, exclusive analysis of custom research, and an intelligent business-news filtering tool, Portfolio.com is the first national business media outlet dedicated solely to delivering actionable news and information to this coveted audience. Portfolio.com relaunched in December 2009 as the information destination for business executives, insiders and strategists within the growing and profitable American City Business Journals. Follow portfolio.com on twitter, Facebook, and YouTube.

About The Business Journals

The Business Journals is the premier media solutions platform for companies strategically targeting business decision makers.  We deliver a total business audience of more than 10 million people via our 42 websites, 64 publications and more than 700 annual industry leading events.

Headquartered in Charlotte, N.C., The Business Journals has sales offices in Atlanta, Boston, Charlotte, Chicago, Dallas, Los Angeles, New York City, San Francisco and Washington, D.C.  It is a subsidiary of American City Business Journals, a unit of Advance Publishing, Inc., whose properties include Condé Nast Publications and the Fairchild and Golf Digest Companies.

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SOURCE Portfolio.com