NEW YORK (TheStreet) --Web.com (WEB) - Get Report CEO David Brown joined CNBC's "Squawk Box" Tuesday morning to discuss the current state of small businesses.

The Jacksonville, FL-based Web.com is a provider of Internet services to small businesses. It offers a broad range of web services including web hosting, website design and search engine optimization. As well as helping to maintain an online presence through social media and marketing.

Traditionally, one of the essential tools to measure the success of small business has been through the NFIB (The National Federation of Independent Business). Some have argued the NFIB has plateaued in recent months, pushing back, Brown says it's relatively stable.

"I look at NFIB and its moves and basically what it's telling you is that we've been in a depressed state of stability. Small businesses have figured out how to survive, and they're now figuring out how to innovate," Brown explained.

"Encouraged" by the creation of positive energy in the small business market, Brown acknowledged it's exciting to see millennials gravitate to the area of entrepreneurship, as well as those in their late 40s and early 50s.

Additionally, Brown commented on some of the challenges small business face when starting out, namely advertising and costs.

"Today it's all digital, 90% of consumers are looking for information or shopping online and in fact, most of them are using mobile devices to shop. That is a major change for small business, and they have to figure out how to use all of this amazing technology and they have to do it quickly," Brown noted.

Web.com sees, on average, small business spending anywhere from $100 to thousands of dollars a month. However, Brown emphasized that though thousands may seem like a daunting number, it has been translated into a positive return on investment.

Finally, regarding which sector he sees as garnering the most growth today, the majority are rooted in services, Brown noted.

"Consultancy, accounts, lawyers, people basically either losing their jobs or giving up on being in the corporate environment, and creating their own ideas," Brown said.

Separately, TheStreet Ratings rates Web.com as a "Hold" with a ratings score of "C." The primary factors that have impacted TheStreet Ratings rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.

The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

You can view the full analysis from the report here: WEB

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