Results from a new study of businesses with less than 100 employees -- prepared by ACNielsen and commissioned by eBay -- found that 51 percent of small businesses using the Internet believe that it has helped their businesses increase profits.

Furthermore, 58 percent of small firms polled report that using the Internet has helped their businesses grow or expand, and 15 percent feel that using the Internet is necessary for their business' very survival.

The study, based on feedback from approximately 400 small businesses, also indicates that many small businesses view the Internet as a powerful sales tool. Thirty-three percent of small business owners use the Internet to sell goods and services online, and 43 percent find sales prospects online.

Additionally, many small businesses that use the Internet say they make online purchases for their businesses. Fifty-four percent procure computers and office technology, and 48 percent buy capital equipment and supplies on the Web. Thirty-three percent buy inventory for resale and more than 21 percent of small businesses purchase office furnishings online. Fifty-nine percent make online purchases of other business-related goods.

In what potentially could be a related statistic, the survey also provides evidence that many small businesses have a positive outlook on the year ahead. Seventy-six percent of small businesses anticipate stronger revenues in 2004, and 74 percent of the respondents expect to grow their customer bases.

Jordan Glazier, eBay Business general manager, said clearly the Internet is helping fuel the success of many small businesses.

"The Internet helps small business owners acquire new customers, expand into new geographies, and purchase the goods and services needed to successfully run a business," Glazier said.

The study is not only an important finding for small firms considering investing or increasing their investment in the online channel -- it also highlights eBay's role in the Internet-enabled small business sector. More than 430,000 small businesses and individuals making a living selling on eBay, Glazier said.

Among the small businesses polled in the study that purchase through the online auction site in particular, 70 percent say that doing so has helped their businesses become more profitable.

What's more, the study also provides evidence that small business owners who use eBay have a more optimistic outlook, and are more likely to hire new employees. The results reveal that 70 percent of small businesses that use eBay have a positive company outlook in 2004, compared to 58 percent for small businesses that don't use eBay (but which might still be doing business online). In addition, 36 percent of small businesses that use eBay anticipate adding full-time employees, compared to 24 percent for non-eBay small businesses.

ACNielsen conducted the telephone survey among 400 U.S. based business owners and decision makers with less than 100 full-time employees. There were two sampling pools used to prepare the study. The first was composed of a random sample of 200 small businesses, and the second was made up 200 small businesses had made a purchase on eBay over the past 12 months.

Patricia Fusco is managing editor of SmallBusinessComputing.com, where this story originally appeared.