26 June 2007
Internet service provider, UK Online commissioned Dynamic Markets to research how many small businesses (with between 1 and 10 employees) had Internet subscriptions. The results are surprising - only one-third of small businesses currently subscribe. When you consider that over half the UK population subscribe, the take-up is very low.
UK Online managing director Chris Stenning is quoted as saying: "I was surprised by the low level of Internet use. I was expecting the figure to be nearer 70-80 per cent. It does show that the smallest businesses have not grasped the benefits of the Internet."
Of the small companies that do use the Internet, 20 per cent are using dial-up, just over one in five have a business email address and less than 50 per cent do not even have their own website.
One theory for the small take-up is the requirement to comply with European customer protection laws. The Federation of Small Businesses EU affairs chairman, Tina Sommer comments: "Plans to reverse the way consumer law is applied to sales over the Internet could make trading in the single market too expensive and risky for millions of small businesses in the UK. This would also hit consumer choice and the ability of shoppers to do online research into prices to make sure they get the best deal."