The findings, released by Mr Site, the website creation package and PayPal, the leading online payments service, show that small businesses without a website could be collectively reducing their turnover by as much as £235 billion.
Despite consumers embracing the digital age, and the Government's pledge to transform the UK into one of the leading digital world economies by 2012, the study indicated that a large proportion of small businesses are still not cashing in on the potential of the internet. Around 61% of small businesses selling goods and 46% of service-providing small businesses reported they are yet to take the plunge and get online.
Among businesses that have an internet presence, over half (56%) stated their overall turnover had increased since the introduction of a website. The average reported increase in turnover for small businesses since having an online presence is 37%. This means that small businesses without a website could potentially be missing out on additional turnover of as much as £52,000 each.
The study suggests that a fear of the potential set up costs is the main reason so many small businesses are holding back from getting a website. Almost a quarter (24%) of small businesses surveyed estimated they would need to spend at least £500 or more to get started up online. An additional 25% admitted to having no idea how much cost is involved in website development, whilst 21% thought setting up a website with e-commerce facilities would cost an extra £250.
