Despite the hoopla surrounding Y2K and its impact on small businesses, most owners say their firms are Y2K ready and compliant, according to a nationwide survey of small business owners, sponsored by KeyCorp, one of the nation's largest integrated multi-line financial services companies specializing in small business.

The KeyCorp survey, conducted by Wirthlin Worldwide, a national public opinion research firm, sampled more than 400 top-level executives from companies across the U.S. with annual sales of between $1 million and $5 million. The survey was conducted in September and October 1999.

"Small business owners also are telling us it's a great time to be in business and that there doesn't appear to be any sign of a slowdown," says Michael A. Butler, vice chairman, Key Small Business. "In fact, an overwhelming majority of the owners we talked to see their businesses growing significantly in the coming years."

Amid the optimism, however, are concerns about staying abreast of the latest technology and demands on family life. Here's a snapshot of some of the survey highlights:

Y2K - Us, worry?

• 55% are not the least bit concerned about Y2K; only 4% very concerned
• 91% say they are Y2K compliant
• 81% have already tested for Y2K readiness
• 43% are not concerned about suppliers being Y2K compliant

• 70% report revenue increases over the past three years (51% on average)
• 66% expect to grow their business in the next few years
• 89% say they have a positive outlook for their region in the new millennium
• 68% in the service and wholesale/retail industry expect growth, compared to 55% of those in manufacturing
• 60% of female business owners perceive growth opportunities as strong, compared to 46% of male business owners.

• 42% say their company's technology is cutting edge/sophisticated; 47% say it's average
• 60% invest in technology because it increases productivity; 33% say it helps create new distribution channels; 32% say it helps increase employees' flexibility
• 45% say specialized software is essential to their business
• 25% do not use the Internet
• 28% do not use e-mail
• 68% of those who use the Internet use it to communicate with clients and customers
• 14% of those who use the Internet use it to transact sales
• 89% use cell phones; 63% use e-mail; 37% use laptop computers
• 53% of Internet users have a company Web site

• 44% say balancing work and family is a concern, compared to 56% who felt similarly last year
• 45% of owners in service-oriented businesses say balancing work and family is a challenge, compared to 31% in wholesale/retail and 19% in manufacturing
• 49% of Internet users report work/family conflicts, compared to 32% non-Internet users
• 37% say they're working more than they did three years ago; 22% are working less

• 52% report taking at least one week of vacation this year
• 17% have not taken a week off in more than four years
• 78% report working on their vacations (67% talked to staff; 57% checked work messages; 36% talked to clients/vendors/suppliers; 29% scheduled meetings)
• 61% would take a month off or more if they could vs. 18% who actually do

Final note: Would they do it all over again?
When asked if they would start their own small business again, 80% say they would. Of those who say they wouldn't, the biggest reason was "too many government regulations." Others cited too much pressure, too much work, not enough time, and too little return.

Key Small Business, which serves more than 300,000 small business customers across the country, offers a broad range of flexible credit and investment products and services along with convenient access through its toll-free telephone support line, 1-888-KEY4BIZ or at www.Key.com/smallbiz.

For more information on the survey and its results or to receive a copy of the survey, contact Tina Chapman at 216-689-5460 or Todd Morgano at 216-241-3069.

Cleveland-based KeyCorp (NYSE: KEY) is one of the nation's largest integrated multiline financial services companies, with assets of about $83 billion. Through a nationwide network of offices, Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies across the U.S. In addition to its offices, Key operates a network of 2,600 ATMs and telephone banking centers (1-800-KEY2YOU) that provide account access and financial products 24 hours a day. Key's Web site is www.Key.com.