European SMEs email but don't ecommerce

The research company's latest survey claims a growing number of Europe's 19.3 million small and medium-sized enterprises are using the internet to conduct business and reach new customers. But only 10 per cent have sales capabilities on their website.

Peter Mazzi, senior analyst at IDC, claimed the falling cost of internet access has driven penetration among SMEs. "Small and medium-sized businesses have adopted the internet quicker than any previous new technology," he said in a statement.

But he said that the majority of SMEs are still in a wait-and-see phase of ebusiness. "They have put in place a basic internet infrastructure and are still cautious, waiting for ecommerce applications to be more extensively used by the public and the development of standardised solutions," he added.

According to IDC, the growth of the application service provider (ASP) model could help drive increased ebusiness in small companies, allowing companies to rent advanced infrastructure rather than buy it.

But the company is warning that security fears mean many small businesses still prefer to implement applications internally. "ASPs and their partners need to raise the awareness of European businesses that are unaware of the ASP concept and must demonstrate the security and flexibility of their infrastructure," Mazzi advised.