21.06.07

Falling Through the Net: Two Thirds of British Small Businesses Ignore the Commercial Opportunity of the Internet

Small business, the backbone of the UK economy, is lagging behind bigger enterprise when it comes to gaining commercial benefit from the internet according to new research from UK Online. The study reveals that a staggering two thirds of small businesses (1-10 employees) are still doing business without an internet connection, email or website.

Those small businesses that are online are also not making best use of their online presence and in some cases not protecting their business. The UK Online survey of 200 small business owners with an internet service revealed that:

• Over half (51%) do not have a company website
• Almost one in five (17%) are using dial up connections
• One in five (18%) do not have anti-virus software
• More than one in three (38%) do not have a Spam Filter

A third (37%) of small business owners that are online admit to using a consumer internet package instead of a business grade service and are giving out consumer email addresses on their business cards, company vehicles and promotional materials.

The small business sector accounts for 95% of UK enterprise and almost one third of all private sector employment*. This sector employs more than five million people and generates more than three billion pounds in revenue.**

Shane Redding, Chair of the B2B Council of the Institute of Direct Marketing: "Small businesses have been relatively slow to reap the rewards that an effective online presence can bring. There is a clear need for small business owners to better understand the opportunities available so that they can continue to thrive and compete against larger businesses."

The survey has also revealed that the internet can be a headache for small business. Without a full time IT manager on board, the technical support offered by internet providers becomes crucial. Getting hold of technical support when something goes wrong was cited as the major pain point (43%), especially for those small businesses using consumer internet packages.

Chris Stening, Managing Director, UK Online said: "The study shows that small business owners are just not working online effectively. We found that a third (35%) of small business owners struggled to find a provider that understands their unique small business needs. There is clearly a need for a dedicated small business broadband provider which can provide the right tools for them to do the job but also back this up with a technical support which works the same hours as they do!"

In response to these findings, UK Online has launched a new package, 'UK Online Business Broadband', designed specifically for businesses with between one and ten employees. The package is available from £19.99 a month*** and includes an 8Mb connection, with unlimited downloads, UK based 24/7 free technical support, extended weekday and weekend hours of operation for customer service, free domain with 20 email addresses and free McAffee Security for 12 months worth £50.

Notes to Editors
* DTI report Management Development and Learning in Micro Businesses, May 2007
** Office for National Statistics - businesses with 0-4 employees
*** Businesses that are not covered by the UK Online LLU footprint, will be able to purchase the service for £29.99. As part of the BSkyB group, the LLU network covers more than 61% of the UK's homes and small businesses.

About the study
The study was carried out by Dynamic Markets on behalf of UK Online during May 2007. 200 owners of UK businesses with between one and ten employees, who subscribe to an internet package, were drawn from a cross section of British industries. In total, 588 decision makers were spoken to, 200 of which had either a consumer or business Internet access package.

About the UK Online Business Broadband package
The new business service is available for purchase directly from UK Online's secure website at www.ukonline.net
UK Online Business Broadband is available with a 12 month contract inclusive of:

• Up to 8Mb download & 768k upload (448k upload via BT)
• Unlimited service, fair usage policy applies
• 24x7 UK Based Freephone Technical Support
• Defined Service Levels
• 20:1 Contention across our network
• Static IP included
• Free McAfee Internet Security Suite for 12 months worth £49.99
• Up to 20 email addresses with free .co.uk or .com domain
• VAT receipt available on request
• Option to buy a Netgear Wireless Router for £49.99

£25 connection fee applies
All prices are +VAT

Deborah Robertson commented: "UK Online is a fantastic brand that has a great track record of innovation in the UK broadband market. Traditionally, small companies have been ignored by ISPs, despite the fact that there are 4.1 million small businesses in the UK and I'm really excited to be part of the team that will change this."

Chris Stening, General Manager, UK Online added: "We are delighted to have Deborah, Threepipe and First City on-board. It's an exciting time for UK Online and I am confident that their combined experience in marketing and communications will be pivotal in driving us forward to securing our position as the leading broadband provider for small businesses."

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