Computer upgrades beat out product development as the top investment made by small and midsize businesses in 1995, says a major survey. The 19% of companies that reported having no computers at all are rapidly being left behind. About 43% of the respondents had recently done a system upgrade, and a third had plans to do one.

Percentage of companies that --

Purchase computers for all office staff 59%

Plan major system upgrades 30%

Operate a client/server network 24%

Subscribe to an on-line service 22%

Provide remote connections to employees 15%

Regularly use the Internet 13%

Source: Survey of 919 companies, most with fewer than 100 employees, by Arthur Andersen's Enterprise Group, May 1995.

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