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Steve Dotto from DottoTech shares his top five favorite free business tools that offer useful functionality even in their free versions. These tools, known as freemium tools, provide basic features for free with the option to upgrade for more advanced features. Dotto emphasizes the importance of the free version being robust and usable for business purposes. The first tool he highlights is a mobile data collection tool by Evernote, known for its usability in the free form.