More small companies make use of Internet

Some 17 per cent of small companies are now trading on-line, but e-commerce accounts for less than 10 per cent of revenues at most of these, according to a new survey by the Small Firms Association (SFA).

The survey of 240 companies which employ less than 50 people found that Internet access increased by 20 percentage points to 87 per cent during 1999, although 42 per cent said they did not permit workers to use the Web.

Welcoming the increase in firms using e-commerce, the SFA's director Mr Pat Delaney expressed concern that 52 per cent of firms said they had no intention of introducing e-commerce during 2000. "Failure to keep pace could eventually lead to a weakened competitive position as innovators and early adapters capitalise on these new technologies for strategic gain," he said.

"Small businesses can now have a shop-front to the world with access to untapped markets and increased revenue opportunities," he added.

Some 41 per cent of firms with an internal computer network have a Web site and the Internet was almost as important a source of information on technology and products as word of mouth.

E-mail use has increased significantly, the survey said. While 75 per cent of firms used it in 1998, this increased to 92 per cent this year. The survey said 62 per cent of firms use e-mail for contact with third parties.

But 2 per cent of "clearly overworked" respondents said they were sorry e-mail was ever invented and 29 per cent described it as a "necessary evil". Some 68 per cent of those who responded said it was "indispensable" to their business.