According to Hostway, the report identifies the primary factors triggering this year's upsurge in e-commerce investment made by small and medium-sized businesses, which were the sizable drop in the cost of domain name registration, the increased use of Web sites as business resources, the global adoption of broadband, and the presence of easy-to-use site management tools.

"Today every business needs a Web site. With more people relying on the Internet as their primary means of communication, information and commerce, SMB owners understand the vital necessity of placing their businesses on the Web," says John Lee, vice president of marketing at Hostway. "Ten years ago SMBs faced not only technical barriers in creating effective Web sites, but consumer skepticism and indifference, as well. Now SMBs are finding a much more favorable climate - from both technological and marketplace perspectives - as they use the Internet to grow and prosper."