Table 13--Business Organization by Firm Size Class, 104 woody ornamental nurseries in Florida, 1988. Business Type Small Medium Large Very Large Total ----------------------------------------------------------- Proprietorship 36.8% 16.0% 9.7% 0.0% 20.2% Partnership 5.3% 8.0% 6.5% 0.0% 5.8% Corporation 57.9% 72.0% 83.9% 100.0% 73.1% Other 0.0% 4.0% 0.0% 0.0% 1.0% 100.0% 100.0% 100.0% 100.0% 100.0% Use of Computers Use of computers in business has skyrocketed within the past ten years, however, adoption of computer technology in agribusiness is though to have been slower than in other sectors. Table 14 details reported use and planned adoption of computers within the next 5 years for 6 major business functions by woody ornamentals firms. Overall, nearly two-thirds of all firms are currently using computers in some way, and within the next five years over three quarters of firms will add or adopt use of computers. Medium, large, and very large firms showed generally high rates of computer use, while less than half of small firms used computers now. The most important function for computers now was accounting (payroll records, accounts payable, accounts receivable), with 58% of all firms. Next in importance currently were word processing (37%) and inventory management (34%), which was also had the highest planned rate of adoption (31%). This function may represent a large potential for software development in the near future. Table 14--Business Functions Computerized Now and Planned Within Next Five Years, 104 woody ornamental nurseries in Florida, 1988. Computer Small Medium Large Very Large Total Function NOW NEXT 5 NOW NEXT 5 NOW NEXT 5 NOW NEXT 5 NOW NEXT 5 --------------percentage of total firms in class--------------- Word Processing 13% 13% 52% 16% 45% 13% 67% 11% 37% 13% Accounting 37% 29% 60% 32% 71% 10% 100% 0% 58% 21% Inventory 11% 37% 44% 40% 42% 26% 78% 0% 34% 31% Financial 5% 5% 8% 12% 6% 6% 11% 33% 7% 10% Marketing 13% 11% 24% 20% 19% 10% 33% 33% 19% 14% Communications 11% 5% 8% 16% 19% 6% 33% 33% 14% 11% Other 5% 8% 4% 8% 3% 0% 11% 11% 5% 6% ................................................................ Total 45% 71% 76% 96% 71% 71% 100% 78% 64% 77% Business Growth and Limits to Expansion In view of the rapid growth in the ornamentals industry during recent years, there has arisen concern about when growth will slow, and what factors will limit expansion of the industry. Figure 7 gives first ranked factors limiting business expansion reported in the survey. Market demand was perceived as the most significant limiting factor, with 24 percent of firms rating this as the number one problem. Availability of productive resources of land, labor, and capital were top-ranked limiting factors by 17 percent, 14 percent, and 21 percent of firms, respectively. Rated of secondary importance, in addition to the above factors, were competition (12%) and hired management (19%). Availability of labor also received high ratings for third order (19%) and fourth order (29%) rankings of importance. Curiously, water supply was not rated highly as a limiting factor, in spite of mandatory water use restrictions in effect for several areas in Florida. It is also puzzling that competition was not rate higher in view of the loss of markets in other states.