[Congressional Record Volume 145, Number 85 (Wednesday, June 16, 1999)]
[Senate]
[Pages S7095-S7096]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              SMALL BUSINESS COMMITTEE'S E-COMMERCE FORUM

  Mr. BOND. Mr. President, over the past several weeks, much of the 
discussion and debate in the Senate has focused on high technology and 
its impact on our everyday lives, particularly with regard to its 
pivotal role in our economy. We heard about the potential problems 
related to Y2K computer failures and the need to guard against 
unreasonable liability in the event that Main Street small businesses, 
through no fault of their own, become the targets of frivolous 
lawsuits. In short, we have been preoccupied with the dawn of the 21st 
century and what we can do to help sustain the robust economic growth 
that has been fueled by as many remarkable breakthroughs in computer 
technologies and computer-related services as we could possibly 
imagine.
  Last Thursday, a new reality dawned when I saw a copy of a study on 
electronic commerce, or e-commerce as business conducted over the 
Internet is known. Many Members got a jolt from the story entitled 
``Net's Economic Impact Zooms.'' A study shows $301 billion was 
generated in revenue in 1998, and it produced 1.2 million jobs. The 
findings were reported in the USA Today and were drawn from a study 
conducted by the Center for Research and Electronic Commerce at the 
University of Texas and Cisco Systems.
  Frankly, I, too, was shocked but in good company because the figures 
exceeded the wildest expectations of the experts. To add a little more 
perspective from that study, consider that

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from 1995 to 1998 the new Internet economy grew 174 percent, compared 
to the 3.8 percent growth in the world economy as a whole. The Internet 
economy alone ranked among the top 20 economies worldwide. More 
importantly, this awe-inspiring growth, packed into just a few short 
years, stands almost toe to toe with the economic horsepower generated 
by the Industrial Revolution.
  The onslaught of e-commerce and the Internet puts us in the same 
position as the snail who was run over by a turtle. When interviewed 
about it, he said: It all happened so fast I never saw it coming.
  We are working hard to see if we can work with small businesses to 
help them see it coming. E-commerce is leading a new business 
revolution, from Wall Street to Main Street. In my view, there simply 
is no more potent force at work in the economy with the equal potential 
to propel nearly every business into the 21st century.
  As chairman of the Senate Committee on Small Business, it is my 
pleasure to work with my colleagues on both sides of the aisle to take 
care of and to be concerned about whether small, independent, family-
owned, and home-based businesses are adequately prepared to be full 
partners in the remarkable growth potential that the Internet economy 
holds.
  Some folks may assume that the rapid development of new technologies 
has given Main Street America the tools to compete more effectively, 
but the unanswered question is whether the technologies readily 
available to small businesses are truly up to the challenge.
  Yesterday, in the Senate Committee on Small Business, we held a forum 
entitled ``e-commerce: Barriers and Opportunities for Small Business.'' 
We had a blue-chip panel of experts in high-tech computer and software 
companies and business leaders representing over 20 trade groups to 
identify and target barriers keeping Main Street businesses from 
expanding into e-commerce.

  We were joined by several of the companies that are leading the 
charge in pushing back the rise of the Internet economy, including an 
Internet service provider from my home State of Missouri, Primary 
Network of St. Louis.
  It was an exciting and informative session considering the potential 
growth e-commerce will undoubtedly spark for many years to come. One of 
the participating companies, CyberCash, unveiled new research 
specifically for yesterday's forum projecting e-commerce business will 
generate another million jobs over the next 2 years. Those are 
conservative estimates.
  Another study from the firm, Cyber Dialogue, shows that many small 
businesses are already taking advantage of e-commerce-based markets. 
That study says over 427,000 small businesses added web sites and sold 
$19 billion worth of products and services over the Internet in the 
last 12 months, a 67-percent increase since early 1998.
  Unfortunately, not all the news was good. According to the American 
City Business Journals and the Network of City Business Journals, only 
10 percent of small businesses have a web site today and only 32 
percent have access to the Internet. That suggests both a disconnect 
and, at the same time, an incredible opportunity for Main Street 
America and for the suppliers of the equipment and services.
  What is more, we were reminded that for many small businesses you 
have to be prepared to deal with a 24-hour-a-day, 7-day-a-week 
business. Some small businesses have difficulty raising the capital and 
acquiring the knowledge to survive in such a dynamic business area. 
Research has shown that even major companies have been slow to realize 
the potential, and many are now working hard to regain market shares 
they lost.
  Today, thanks to the cutting-edge expertise and the information 
provided at yesterday's forum, we are a little wiser about the Internet 
economy. We know that e-commerce can be economic TNT. I think Congress 
has a duty to make sure that as many independent, family-owned and 
home-based businesses as possible are not at risk of being left behind 
in this worldwide business revolution.
  I am deeply grateful to the occupant of the Chair. His subcommittee 
of the Senate Committee on Appropriations has approved a $1 million 
earmark we asked for to allow the Small Business Administration's 
Office of Advocacy to begin a study of the potential of e-commerce for 
small business. We are going to ask the Office of Advocacy to develop a 
web site to help small businesses who want to do business with the 
Federal Government.
  Make no mistake, the Internet economy is a train that has already 
left the station and it is picking up speed by the minute. I look 
forward to working with my colleagues, both in the committee and in 
this broader body, to help Main Street America climb on board.
  I look forward to pursuing this effort. We are outlining just a few 
steps we will take on the Senate Committee on Small Business. We 
welcome ideas, participation and suggestions from other colleagues. We 
invite all Members of the Senate to join in making sure that the 
smallest businesses in the United States have access to this tremendous 
engine of economic growth.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Pennsylvania.

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