Although small-business owners are ahead of the average retail customer when it comes to using PC banking, many entrepreneurs still worry about the security of on-line transactions, according to a recent survey by PSI Global.
Fully 25% of the 275 small-business owners surveyed last month by Tampa- based PSI use PC banking, while only 3% of retail households do, according to Maria Erickson, PSI's senior vice president for corporate services.
But "even the ones that will give their credit card numbers on-line still feel nervous about doing their daily banking on-line," Ms. Erickson said.
That entrepreneurs have been out in front when it comes to PC banking was expected, Ms. Erickson said. Small-business owners tend to be affluent and well-educated. Both characteristics indicate a likely comfort level with PC banking.
But 69% of those entrepreneurs surveyed by PSI said they were still reluctant to give their credit card numbers on-line.
Mary Ellen Richter, director of small business delivery development for BankBoston Corp., said some small-business owners have also hesitated to use PC banking because they are afraid it will take too much of their time.
"These are very busy people and they don't have a systems or technical support division," she said. "They have to do everything for themselves."
However, a majority of the business owners surveyed said they trust the information they receive from their bankers on the security of on-line banking, more so than from other sources.
The study showed 67% trust their bankers; 30% believe information from brokerages, and 24% said they trust Microsoft Corp.
"Bankers are still viewed as conservative and cautious and people believe they won't do anything risky with money," Ms. Erickson said.
In addition, the survey found that though business owners may invest or purchase products on-line, that did not mean those same entrepreneurs would be more likely to use PC banking.
Banks are most effective in convincing small-business owners to use PC banking when it is offered free for several months, Ms. Erickson said.
Entrepreneurs may have taken to PC banking in even greater numbers if banks had moved more quickly to promote it to them, according to Ms. Richter.
Banks often made a bigger and earlier effort to convince the larger consumer market to use PC banking, she noted.
To combat the problem, BankBoston has held seminars specifically for small-business owners about its QuickBooks PC banking program. The seminars have attracted a lot of attention from entrepreneurs, she said.
