Dell, Gateway, Hewlett-Packard, IBM and now Compaq are all refining product and promotional efforts to appeal to small businesses, with the Internet and direct contact playing an increasingly important role.

Small firms are always checking to see if another brand or dealer represents a better choice. But past experience with a brand continues to be an important factor in new PC selection.

A lot of e-mail, that’s for sure. That’s probably application No. 1.

In Germany, the Netherlands and the U.K., small businesses are now rivaling the U.S. in terms of PC use, with other countries showing great strides as well.