Small firms warm to the Web

Small and medium-sized enterprises (SMEs) in the UK are gradually recognising the benefits of being online, with a growing proportion looking to embrace Web-based transactional services during the next 12 months.

Durlacher Research - which surveyed 1,042 SMEs across the country - found that while Internet penetration is reaching saturation point among large companies, only 40 per cent of SMEs (33 per cent of small businesses and 54 per cent of medium-sized companies) use the medium. Among those that do, email comes out as by far the most valued facet of the Internet, but the survey found 16 per cent of wired SMEs already incorporate some kind of transaction-based service.

Durlacher found that 60 per cent of Internet-enabled SMEs - about 95,000 businesses - have a Web site, but their Web strategy is not always coherent.

Durlacher analyst, Nick Gibson, said: "The majority of Web sites are set up for promotional purposes only, and are a quick fix. They can get far greater return on investment if they use them for transactional purposes."

Transaction-based sites are forecast to increase in number over the coming year. In the retail sector - where the Web has been embraced by SMEs - transaction-based sites will increase from 13 to 46 per cent of all sites; in transport the figure will move from six to 31 per cent, and in manufacturing from nine to 29 per cent.

Of the SMEs which don't intend to use the Internet, 56 per cent cited lack of necessity, while only 5 per cent said the cost is too high.