A small business network can provide entrepreneurs with the sense of security knowing that their data is kept in an electronic format and can be backed up and accessed when needed.  Data can be backed and kept off site to so that it can be protected from natural or man-made disasters at your work site.  The data can also be protected in other ways such as by using encryption.

Having your data on the network with fail over systems gives you the ability it at any time from anywhere without disruption.  If all of your data is maintained in hard copy files and kept in the office the only you can access them is to physically be in the office.

Data maintained in an electronic format can be better protected from those who should not gain access to it by employing security measures to only give access to those who are authorized to see it.  This would protect the data even if someone was to break into your office and steal the computer.  But, it would not protect the data if it was maintained in hard copy in your office.  You can also establish confidential internal communication among employees without worrying that it may be seen by an outside entity.  You can also employ measures to learn who has accessed the data.

Networking gives you the ability to have employees share access to files, printers and the Internet.  Employees can collaborate on projects while geographically dispersed. You can limit the number of printers you have to buy thereby reducing cost.  You can give employees access to files and data even if they are not physically in the office.

 Employees can collaborate on projects while geographically dispersed.   You no longer have to be confined to the same physical space in order to collaborate.  You can conduct virtual meetings with employees that are geographically dispersed.  Through the use of video teleconferencing that runs over the network you can hear and see the person you're communicating with.  This significantly reduces operating cost by eliminating the need to travel to hold meetings.