New Sage-sponsored Study Indicates Small Businesses Use Social Networking to Better Serve Customers and Connect with Peers

Washington , DC - May 18, 2009 - Sage North America announced today the findings of a recent independent survey conducted by AMI-Partners which revealed that small businesses' attitude towards social media is maturing and they are embracing new online networking tools which are generating quantifiable results that directly impact their bottom line. Further results show that fifty-seven percent of respondents found that tough economic conditions were very or extremely important in their decision to use electronic social media as part of their business strategy.

"These research findings confirm that the current economy is pressing entrepreneurs to find new and effective tools to stay on top of industry trends, and to keep in touch with peers and customers in order to remain competitive," said Rob King, vice president of strategic marketing, Sage North America. "Small businesses are embracing social networking as an affordable, easy and effective way to reduce marketing and operational costs."

According to the study, more than half of small businesses consider digital social media to be a significant factor in acquiring and retaining existing customers.

"I signed up for Known Locally through Sage Spark and got a domain and a web page in less than 10 minutes," said Moira Milligan, certified public bookkeeper. "Not only was it quick to do, it was quick to pay off! In a few days I had a new customer and I know it was from the Known Locally webpage and submissions."

The survey indicates that connecting with peers and customers are the two main drivers for small businesses to engage in social media. Moreover, entrepreneurs regard social media as an online extension of traditional word-of-mouth marketing and believe social networking will improve their image among customers and business partners.

In contrast, 52 percent of respondents said that online security continues to be a top concern preventing them from embracing new social media technologies.

The study revealed that the age of a company has an impact on the triggers and drivers of digital social media. Whereas younger companies (less than 5 years) are more driven to adopt social media by peers (68 percent), competitors (49 percent) and clients (65 percent), older companies (more than 5 years) are driven to using social media by a desire to promote the company and its products (44 percent). The survey also found that younger companies are more concerned with finding business services and getting advice on starting and managing their business as compared to their older counterparts.

"Social networking has become an increasingly important tool for small businesses and they are quickly adopting this new marketing tool with over 33 percent more users in 2009 than a year before," said Nikki Lamba, Associate at AMI Partners. "AMI expects to see continued growth in this area over the next few years, particularly as small businesses find an increasing number of their peers, clients and competitors engaging in social networking."

Further survey findings reveal that:

Almost two-thirds (65 percent) of small businesses feel more comfortable using digital social media as compared to a year ago.
Just over a third (38 percent) of small businesses are spending less time on traditional marketing in order to make greater use of emerging social media tools.
The survey also shows that the lines between professional and social networking online are blurring. Research shows that small businesses are using the same sites for both business and personal use, with the exception of LinkedIn, which is used more for business purposes.
"Small businesses are recognizing the importance of integrating social networking into their overall business and marketing strategy," added King. "That’s why we created SageSpark.com, an online resource destination helping entrepreneurs succeed in business as well as stay connected with peers and the latest technology."

SageSpark.com delivers the elements entrepreneurs need to get started inexpensively, via free and low-cost services; and get motivated, via a strong community of experts and peers, sharing best practices and providing encouragement for entry-level businesses.

About Access Markets International (AMI) Partners, Inc.
AMI-Partners specializes in IT, Internet, telecommunications and business services strategy, venture capital, and actionable market intelligence — with a strong focus on global small and medium businesses (SMBs), and extending into large enterprises and home-based businesses. The AMI-Partners mission is to empower clients for success with the highest quality data, business strategy perspectives and “go-to-market” solutions. Led by Andy Bose, the firm has built a world-class management team with deep experience cutting across IT, telecommunications and business services sectors in established and emerging markets.

About Sage North America
Sage North America is part of The Sage Group plc, a leading global supplier of business management software and services. At Sage, we live and breathe business every day. We are passionate about helping our customers achieve their ambitions. Our range of business software and services is continually evolving as we innovate to answer our customers' needs. Our solutions support accounting, operations, customer relationship management, human resources, time tracking, merchant services and the specialized needs of the construction, distribution, healthcare, manufacturing, nonprofit and real estate industries. Sage North America employs approximately 4,100 people and supports 2.9 million small and medium-size business customers. The Sage Group plc, formed in 1981, was floated on the London Stock Exchange in 1989 and now employs more than 14,500 people and supports more than 5.8 million customers worldwide. For more information, please visit the web site at www.sagenorthamerica.com or call 866-308-2378.