More than 20 per cent of China's small businesses plan to buy their first PC during 2007, according to a new survey.

The purchases could put up to $103m into the pockets of PC vendors, research firm Access Markets International Partners (AMI) estimates. 

China has approximately 70 million small businesses, defined as having fewer than 100 staff, around 70 per cent of which do not currently own any desktop or notebook PCs, according to AMI.

Researchers at analyst firm IDC said recently that demand from small and medium sized businesses was a key growth driver in China's PC domestic PC sales during the fourth quarter of 2006. 

IDC predicts China's PC sales to reach almost $18bn in 2007, a year-on-year increase of more than 13 per cent.

In a recent survey, one third of small businesses without PCs told AMI that they plan to buy their first PC during the next 12 months.

"With desktop prices lower than those of laptops, 84 per cent of non-PC small businesses planning to buy PCs will buy desktops for which they will pay an average of $800," said AMI analyst Cindy Tan.

"Comparatively the average price they are willing to pay for a laptop is $1,150. Popular choices of desktop PC brands they intend to purchase include Lenovo, Samsung, HP and Dell." 

AMI estimates the total value of this new PC market at $345m, of which up to one third could be spent during the next 12 months.

Businesses told the research firm that they are adopting PCs for a variety of reasons, including automation of business processes, improved efficiency, increased employee productivity, and to keep up with competitors.