STAMFORD, Conn.--(BUSINESS WIRE)--Nov. 9, 1999--Many people are attracted to the idea of being their own boss and earning a living doing something they truly enjoy. Having your own business isn't for the faint at heart. According to a 1998 report by the National Federation of Independent Business (NFIB) the median life span of a terminating small business is between three and five years, with only one in ten surviving 20 years or more. So what sets successful entrepreneurs apart from the rest?

In a landmark study released today, Pitney Bowes Inc. (NYSE: PBI) uncovers the elements of entrepreneurial spirit and competitive drive that both spell success and set these companies apart from big business. Additionally, the Pitney Bowes study demonstrates how owners' feelings, attitudes and ideas are directly translated into the way they run their businesses day-to-day.

The Pitney Bowes study, called "Attitudes and Behaviors that Create Small Business Success," was conducted with Yankelovich Partners and examined over 1,400 small companies.

Success is a State of Mind

Previous studies have only explored small businesses from a demographic perspective. But the Pitney Bowes study takes a fresh approach, exploring attitudes towards growth, control, finances and technology, and defining them within the context of the personality of small business owners.

"By most measures, the owner IS the small business. How they approach life is how they approach their business. What they want, how they wish to spend their time, their attitudes, their skills and expertise, what they want to improve and what keeps them up at night are reflected in the owners' personalities and guide virtually all business decisions," says Elise DeBois, President, Small Business Solutions at Pitney Bowes. "If you identify the attitudes and behaviors of small business owners, you identify the attitudes and behaviors that make their businesses successful as well."

The data also highlighted certain fundamentals that cut across all business types. These revolve around the owner's need to maintain a competitive edge in a constantly changing marketplace and by reliance on quality of product and service to keep ahead. This "quest for quality" is reflected not only in the owner's spirit, work ethic and hands-on approach, but more importantly in his/her orientation and approach to growth, control, finances and technology.

Optimistic About the Future

For the most part, small businesses are a highly optimistic and progressive-minded group. Nearly 90% are positive about the nation's future, their industries and their own businesses. In fact, according to the Pitney Bowes study, 76% believe their businesses have great potential and nearly 60% view growth as a top priority. Additionally, 44% of small business owners realize that in order to grow, they will need to invest more capital.

Bigger Is Not Always Better

At some point, all small business owners ask themselves whether growth in size is where they want to take their business. Some balk at the thought of "staffing up." In fact, 41% say that they don't want to have to manage a larger business with all its attendant personnel issues. Ultimately, some owners fear that customer service and quality of product, two key elements that set them apart from big business, will be compromised to accommodate growth. In fact, 66% of small business owners want to keep the business themselves or in the family. Twenty percent seek to sell and only 3% would like to go public.

Fiscal Fundamentals

The study found that the financial risk tolerance of small businesses is quite different from their big business counterparts. In fact, 50% of the owners say they spend only the money they have. But this sets up another juggling act, trying to maintain seamless delivery of constantly improving customer service and quality product while bypassing more aggressive financial opportunities they feel they cannot readily afford.

Overall a financially conservative group, 55% of small businesses try to use credit only when they have to. However, from a pragmatic perspective, small business owners often do rely on credit because the reality is that credit enables them to accomplish mission-critical business activities that might otherwise be outside of their reach financially. And with 84% surveyed saying that they are always striving to improve their business, it's not hard to see where access to credit and growth capital becomes a critical issue.

High Personal Involvement

The vast majority (79%) of small business owners truly enjoy their work and their independence (68%). Many are personally invested in the success of their business and 44% see their involvement as directly affecting the profits they earn. In fact, the study found that 54% of small business owners believe they are the ones who "know best" how to do almost everything related to their business. Only 29% are comfortable that their staffs can run the business without them. In many cases, the owner has a "hands-on" approach to everything including his/her own work, dealing with customers, handling administrative and financial details, managing employees, and negotiating with suppliers. Not surprisingly, about 40% feel that their workday is very high-pressured.

Keeping Up With Technology

A great concern for many small business owners is staying on top of technology. They recognize that technology has become an important tool that allows them to generate new customers, keep in touch with existing customers, manage vendor relationships, pay the bills and even find new employees; 46% worry about keeping up.

Technological knowledge is becoming more important every day. Internet usage is up to approximately 40% and is being used primarily to gather information and communicate via e-mail. Twenty-five percent of small businesses have their own Web site. Forty-nine percent believe the Internet will become more important for their business and many have found that the Web is yet another way to delivery quality and customer service, hallmarks of small business success.

Stable Backbone of Innovation

According to DeBois, "Though small business owners feel the constantly changing fortunes of their firms acutely and personally, this is a very stable portion of the nation's economy and a source of exciting business creativity. While corporate America, and big business in general, regularly experiences the fluctuations of a global economy, small businesses are more insulated with their tightly controlled base. As they reach out to new markets with tools such as the Internet, they will face new, complex challenges; but by continuing to offer consistently high-quality products and service they will maintain their competitive edge. With more than 60% in a growth mode and displaying excellent staying power, we believe this market will be the source of rich innovation and creativity in the long haul."

About Pitney Bowes

Pitney Bowes Inc. is a $4.2 billion global provider of informed mail and messaging management solutions. Its full suite of mailing, marketing and financial products and services are designed for the way small business really works. The suite of small business solutions is being offered under the new PitneyWorks(SM) brand name. For more information please visit our web site at http://www.pitneyworks.com.