Access to the Internet and financial performance of small business households

Abstract

With increased focus on survival strategies for small farm businesses, we investigate the impact of access to the Internet on household income and expenses of small farm businesses and households. Using a nationwide data from the U.S. and non-parametric matching estimators, the study finds a significant positive impact of access to the Internet on total household income and off-farm income. Our study suggests that small farm businesses benefit from Internet access as it increases business income, off-farm income and total household income. Also, access to the Internet reduces some input costs and household expenses.