According to the New York-based research firm in a statement, Hong Kong's SMBs spent US$215 million, or 17 percent of the US$1.25 billion that was spent on IT in 2004, on Internet-related technologies.

The survey found that more than 60 percent of SMBs in Hong Kong plan to use the Internet to strengthen their customer relationships, and over 50 percent intend to automate various business processes via the Internet.

Jackie Chan, a senior analyst with AMI-Partners, noted that more than 98 percent of Hong Kong's businesses are SMBs, which account for 60 percent of the workforce. Most small businesses, which have between one and 99 employees, are family-owned.