Small businesses way behind on getting online

Small businesses are starting to catch up with large firms when it comes to using the internet, with adoption coming at a slow but steady pace.

Businesses of 10 to 49 people saw the largest growth (eight per cent) in internet access between 2002 and 2003, followed by under-10-person firms with a three per cent rise, according to an annual ecommerce study published by the Office for National Statistics (ONS).

While about 40 per cent of the smallest businesses - less than 10 people - still do not have internet access, nearly all firms over 50 people already do, says the study.

Overall 62 per cent of businesses had internet access at the end of 2003, up three per cent from the previous year - and the number using mobile technologies passed the halfway mark.

Companies are going online for a number of reasons - some say it's required by partners and suppliers, some say it's in response to customer demand and some choose to do so to ease the burden of dealing with customers on the telephone.

More companies of all sizes are using the business to sell than in 2002 - the number is up 25 per cent to five per cent of the total.

Firms are more likely to buy online than sell, though, as nearly a third of companies surveyed made an online purchase in 2003.

Broadband is the connection method of choice for one in four firms, up from one in seven in 2002, thanks to wider availability geographically and lower pricing.

While many take web surfing at work for granted, the study shows a little over a third of the working population has internet access, nine per cent higher than last year.

The ONS study is based on a survey of approximately 10,000 non-financial businesses.