According to Midphase, Inc, nearly 60 percent of its small and medium sized business (SMB) customers have been negatively impacted by the recession, with 58 percent citing a revenue drop from between 5 percent to over 60 percent.

Based on a survey of 3,000 of its customers, Midphase found that one of the main reasons for such revenue drops was the challenge of finding new customers.

Many such SMBs have responded to the recession by creating new revenue streams, particularly via the Internet. Midphase found that 60 percent of those surveyed were supplementing their existing income with income from a web presence.

While 47.7 percent said their web presence represented less than 10 percent of their income, most believed their online initiatives would lead to revenue growth over the next 12 months. 56 percent of the SMBs surveyed predicted a 5-10 percent increase, 20 percent predicted a 10-20 percent increase and 12 percent predicted a 25-50 percent increase.

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