SMEs are failing to exploit new technology, according to the minister for small business and e-commerce, Patricia Hewitt.

Speaking at an inaugural event for the ISI/Interforum E-commerce Awards, Hewitt said too many SMEs still haven't woken up to the opportunities offered by the Internet and needed help to adopt the "power of e-commerce". "We've got some great small businesses that are really exploiting the new technology but we haven't got enough of them and too many are lagging behind," she said.

Research by BT last November found that UK SMEs still trail larger businesses in their uptake of web technologies, with almost 67 per cent not online at that time.

Hewitt said the key to success of the knowledge economy was for government to work hand-in-hand with business. She added she wanted to see the government become a leading edge user of information communications technology as part of the UK's transition to the digital age.

Anna Lagerkvist