Small firms benefit from being online, says Yell survey - 31 March 2001
Firms using the Internet are gaining a clear competitive advantage over rivals without web access, according to a new survey published today.Some 39 per cent of business users claim an increase in sales enquiries and a fifth a boost in profits since going online.
The nationwide Small Business Watch poll of 1,500 small firms, commissioned by Yell – formerly the Yellow Pages Group - with UK online for business, a partnership between industry and Government, 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.
Patricia Hewitt, Secretary of Statefor Trade and Industry said: “It is hugely encouraging to see that more small businesses are joining the information age, but it is important for other companies not to get left behind. E-business is going to power the way we do business and companies must look to extend and expand the way in which they use technologies if they are to gain the true benefits. The challenge now, particularly for small companies, is to move beyond simply putting a brochure online to integrating e-commerce into supply chain management and other back office systems.”
National findings reveal that more than half of business 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 and a third claim that their customer base has grown. The impact of the Internet has seen nearly a quarter of firms increase their turnover since going online.
The findings also reveal strong regional variations in Internet access. Nearly two thirds of small firms in the Thames Valley and more than 60 per cent in London and the South West are now online. In contrast only 39 per cent of small business in the West Midlands and just over 40 per cent in Yorkshire and Wales have access to the Net.
More positively, 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.
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 firms 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 for business we are keen to support initiatives that help companies understand and realise the benefits that the Internet can bring.”
Patricia Hewitt added: If we are to be the best place in the world to trade online, we must create an environment which nurtures new and emerging e-businesses. Through programmes like UK online for business we are equipping people with the knowledge and skills they need through initiatives to reach businesses and consumers.”
