Regions Missing Out By Being Offline - 31 March 2001
Firms in the West Midlands, Yorkshire and Wales are missing out on the new economic wealth created by the Internet, so says a new survey out today.Only 39 per cent of companies in the West Midlands and a little over 40 per cent in Yorkshire and Wales have access to the Net. In contrast, nearly two thirds of small firms in the Thames Valley and over 60 per cent of companies in London and the South West are now online.
The nationwide Small Business Watch poll of 1,500 companies, commissioned by Yell - formerly the Yellow Pages Group - with UK Online for Business, part of the DTI, reveals that 52 per cent of small firms are now using the Internet and a further 15 per cent expect to be doing so by next year.
However, findings reveal strong regional variations with some areas failing to adopt the Internet as fast as more IT competent competitors in London and the South. Some 39 per cent of current users claim an increase in sales enquiries and a third a boost in profits since going online.
Furthermore, national findings reveal that more than half of company users say their decision to go online has met or exceeded their initial expectations. Of these, 46 per cent say their company has benefited from more efficient business processes with customers receiving a faster service - a third have seen their customer base grow. The impact of the Internet has seen nearly a quarter of firms increase their turnover since going online.
Nearly half of companies who promote themselves online also purchase goods or services online and one in four companies sell directly to consumers online. A further 20 per cent sell to other businesses or government.
However, both current and potential users anticipate growing their e-commerce business. Some 70 per cent believe they will be purchasing and 54 per cent selling online by next year. Just under half will be selling to other businesses and government.
Worryingly, security remains a chief concern in using the Internet. Some 70 per cent expressed fears of computer viruses, fraud, and unauthorised access to company data.
John Condron, CEO of Yell said: "Yell is committed to supporting small businesses, and research of this kind helps identify issues that affect their success in the marketplace. This survey clearly demonstrates that companies who go online are gaining a clear competitive advantage over non-users and some areas are benefiting more than others."
"Interestingly, one in four companies believed that the Internet is not relevant to their business and 11 per cent feel that they lack sufficient computer skills or knowledge to go online. As a key partner to UK Online we are keen to support initiatives that help companies understand and realise the benefits that the Internet can bring".
