Many SMBs failing to utilise the internet

Thursday 15 November 2012

A failure to embrace the internet is hampering the growth prospects of many small and medium-sized businesses (SMBs) in the UK, a study has suggested.

Research conducted by Lloyds Banking Group found that 37 per cent of SMBs do not have a website and 20 per cent are 'deliberately disconnected' from the web.

Some 30 per cent of SMBs surveyed were not developing their use of the internet in any way - meaning they are missing out on cheap marketing and sales opportunities.

At the other end of the spectrum, 28 per cent of SMBs were found to have an advanced website featuring mobile applications.

"These businesses are aware of the commercial benefits of having a strong digital presence," Lloyds Banking Group stated.

"They are also likely to have experienced growth in the last two years and are open to new and innovative approaches as a route to further expansion."

David Oldfield, managing director of SMB and mid markets banking at Lloyds Banking Group, said there is "no avoiding the fact that the internet is part of everyday life.

He said it is now an "essential ingredient" of business growth - for large and small companies alike,

"This research shows that many SMBs are still not embracing digital technology often because they don't believe there are benefits to be had," Mr Oldfield stated.

"But it is clear that when businesses do go digital, the rewards come quickly."

Posted by Alex Boardman