British SMEs storm the Net

Seventy five per cent of UK-based SMEs (small and medium-sized enterprises) now have an online presence, showing a dramatic shift towards the Net economy in just six months.

According to the latest figures from research house Mori, small UK firms are far from being the Internet laggards they are often portrayed as. Three quarters of those surveyed claim to have a Web site up and running, and over half of those are already selling online.

Rouzbeh Pirouz, CEO of Mondus.com, survey sponsor and Web marketplace provider, said he's seen a huge move onto the net in the last six months.

Less than one year ago, a Department of Trade and Industry (DTI) report showed SMEs lagging behind in the uptake of the electronic economy, with only 15 per cent of businesses employing under 10 employees using the Net.

Mondus.com's Pirouz said: "It seems there has been a tremendous leap in the number of businesses not just accessing the Internet, but also using the Internet and trading online. It's also great news for UK plc because it indicates an increasing confidence in conducting business on the Internet."

However, it isn't all good news - the survey also discovered security worries and a lack of skills are the major barriers to IT adoption.

Also, in spite of the UK government's commitment to the Internet economy and SMEs in last week's budget, its message hasn't reached smaller enterprises. Twenty-five per cent of those surveyed said a lack of government support is a barrier to the development of ebusiness.

David Hands of the Federation of Small Businesses agreed the government needs to do more to get SMEs online. He welcomed Mori's report, but questioned how much it can be considered representative.

"Only a handful of our members have Web sites, so I would question whether these figures are correct," he said. The smallest businesses are still well behind in the adoption of Internet technology, he added.