Small firms fall behind online

The internet is the world's fastest growing industry, creating a global market. Despite this, only 40 per cent of UK businesses represent themselves online. The vast majority are small and medium enterprises, failing to maximise their return on investment, according to an IT services provider.

Lawrence Jones, MD of UKFast believes SMEs are throwing away great opportunities to build their profile and revenue by not optimising their online presence.

The UK's largest businesses lead the way and enjoy the lion's share of internet income. Making up just two per cent of online businesses, they account for 75 per cent of the net's UK revenue – sharing over £53.4bn a year. In sharp contrast, the UK's 1.5 million other online businesses generate 25 per cent.

Lawrence Jones, said: "Small and medium sized businesses are missing out on the net's full potential. The figures are staggering. Less than eight per cent of all SMEs are profiting directly from the web."

However, the tide is beginning to turn. UKFast reports a sharp increase in dedicated server sales to SMEs this year.

Mr Jones said: "Companies are now moving in their droves from shared hosting to more sophisticated solutions. 2006 sees serious SMEs taking a bigger chunk out of the corporate wealth and increasing the profits available online."

"It makes for a very interesting marketplace. Competition amongst the internet's entrepreneurs will be fierce and only those with solid online infrastructures will remain at the forefront."

Figures from the National Statistics survey into ICT Activity of UK Businesses (Feb 2006 amendment).