News on 12 October 2000
A UK survey by incubator Xworks showed that nearly half (45%) of small
businesses said they did not understand the benefits of building a website.
250 businesses took part in the survey, which showed that 48% did not
have a website at all and 90% estimated the cost of setting one up at
less than £1,000. The actual cost, according to Xworks, is between
£6,000 and £10,000.
John Drummond, chief executive of Xworks, said: "Many small businesses
are underestimating the cost of using the internet for e-commerce. Cutting
corners is a false economy - you need to make a reasonable commitment
to be successful online," he warned.
The survey figures appear to contradict a recent Durlacher survey, which
predicted that SME spending on e-business technology would rise over the
coming year from £18,200 to £21,500.
Published at the same time, a new government report has revealed that
27% of the UK's businesses now use the internet. The figures show, says
the government, that the UK leads the world in using the internet for
transactions between customers, companies and their suppliers.
Ministers have asserted that the UK is on a par with the USA, Canada,
Germany and Sweden in the amount of business being done online, although
a recent report by accountants PricewaterhouseCoopers hailed Germany as
the dominant force in European e-commerce.
So, while there is much happening in the marketplace, it is still difficult
to know who is doing what and how fast.
