38% of Central and Eastern European spending on IT came from small businesses

According to IDC study of 8 Central and Eastern European countries (not including Russia), although SMBs employ about two-thirds of the total workforce in CEE and account for a vast majority of businesses, many still suffer from commercial backwardness, little horizontal organization through associations and partnerships, and a lack of modern business tools. Nevertheless, a small but growing group of SMBs are plunging into entrepreneurialism and embracing the digital age, especially in the manufacturing and financial services sectors. In terms of company size, small businesses (less than 100 people) accounted for more than 38% of IT investments in 2004, ranking first in key IT categories like PCs, software, networking equipment, and IT services. In the eight countries under study, IDC expects IT spending growth among SMBs to rise faster than the average for all enterprises over the next few years. Small manufacturers and financial services organizations will lead the field, averaging 12.6% and 12.4% respectively, in annual IT spending growth.