$78.00

$69.00

$72.00

$75.00

$66.00

$63.00

$60.00

Med

ian

Mo

nthl

y C

ost

2.0 3.0 4.0 5.0 6.0 7.0 8.0

Number of businessesthat subscribe (000)

400

20010050

Median Advertised Download Speed (Mbps)

TN

AK

TX

SC

IA

MN

MI

FLNV

StatesBroadband

Speed (Mbps)

Median Broadband

Cost

CN Average

4.9 $68.32

Alaska 2.6 $76.11

Florida 6.9 $68.95

Iowa 4.4 $62.71

Michigan 3.8 $61.88

Minnesota 4.3 $63.53

Nevada 4.9 $68.07

South Carolina

3.7 $72.61

Tennessee 4.8 $73.71

Texas 4.7 $70.79

Technology Adoption Among Minnesota Businesses

/connectminnesota@connectmn

www.connectmn.org

The results of Connect Minnesota’s 2011 Business Technology Assessment show the importance of technology to businesses throughout the state.

Across Minnesota, 73% of businesses subscribe to broadband service, which is the same adoption rate from 2010. This means that approximately 40,000 Minnesota businesses still do not use or benefit from broadband. Businesses in the High Tech sector have the highest broadband adoption rate, while only 59% of businesses in the Retail Trade sector use broadband.

Technology is also being used in other ways across Minnesota. In 2011, 85% of Minnesota businesses used computer technology for their work. Plus, just under one-third (30%) of businesses in Minnesota allow their employees to telework. The Professional and Financial Services sector has the highest percentage of these businesses that provide their employees the flexibility to work from home. Minnesota businesses pay a median price of $63.53 per month for broadband service, a lower price than the Connected Nation median of $68.32. Broadband-connected Minnesota businesses report that their median advertised download speed is 4.3 Mbps, compared to the Connected Nation average of 4.9 Mbps.

1-4 Employees

5-19 Employees

20-49 Employees

50+ Employees

High Tech

Manufacturing

Wholesale Trade

Retail Trade

Healthcare

Other Services

Professional & Financial Service

Ag, Mining, Construction, Utilities

Minnesota Average

2010 Rate(for comparison)

ComputerUse

Broadband Adoption

Employees Telework

85%

78%

90%

73%

68%

74%

30%

31%

28%

99%83%

27%

98%90%

43%

87%84%

44%

79%69%

16%

86%73%

24%

93%80%

40%

74%59%

15%

98%78%

48%

92%82%

26%

80%73%

35%

Revenues

Communication

Jobs

Sales

Approximately

$200,000Minnesota business establishments that use

broadband report median annual revenues that are approximately $200,000 higher than

businesses that do not use broadband

Minnesota business establishments have websites

Minnesota businesses use the Internet to

advertise job openings or accept job applications

Online sales in Minnesota account for approximately $6.2 billion in annual sales revenue, including approximately $1.1 billion for small businesses with fewer than five employees

Minnesota businesses allow employees to telework, including 13,000 rural businesses

Of minority-owned businesses in Minnesota (56%) advertise their products and services online

Of Minnesota businesses in the healthcare sector (55%) use the Internet

to stay in touch with their customers and patients

Businesses (20%) find work by bidding on contracts online

More than1/2

83,000

47,000

$6.2B

44,000

Minnesota Businesses – Looking to the Future

with Broadband

More than1/2

1In5

Connect Minnesota 2011 Business Technology Assessment Published May 2012