The reality of smaller businesses is that they cannot afford to upgrade their software every time a new version of windows is released.
If it works, they will continue to use it. A site or volume license for MS Office 97 may have expired, but as long as the product activation codes work, these companies will continue to use it as long as they can.
If a machine dies, and has to be replaced, then yes, they will put Office 97 on a Windows 7 PC. This will cause security and compatibility issues, but these may take a back seat to saving money, especially in this economy.