Press Room

Small Firms Embrace Broadband Technology
(23 January 2006)

Small businesses have embraced new technology such as Broadband and wireless networking, according to the latest NatWest/ SERTeam Quarterly Survey of Small Businesses. In less than two years, the proportion of small firms with a Broadband ADSL connection has doubled to 56% making this easily the most common form of internet connection. Just four years ago, less than 3% used a Broadband ADSL connection.

Over the last twenty years, the use of computer technology has ballooned with only 36% of small businesses owning or leasing a computer in 1985. By 1991 this proportion almost doubled to 68% and currently 92% of small businesses rely on a computer to function day to day.

However, whilst the use of computers and broadband is now widespread, over a third of small businesses do not have a website promoting their business on the world wide web. What’s more, of those that do have a website, a fifth hadn’t updated it in over a year.

Of the two thirds of businesses that have a website, only 11% use it to sell goods and receive payment over the internet. That said, a further 14% hoped to be able to accept payments for their goods over the internet within the next year.

Government regulation and paperwork continues to be the biggest bugbear facing small businesses at any one time. That said, the problem of the general economic climate has continued to move back up the agenda of Britain’s small firms.

This was the top ranked problem for most of 2003, however six months ago it had dropped to only 9% of small firms reporting this as their biggest concern. Since then small firm performance has weakened and the proportion citing the general economic climate as their most important problem has now risen to 16%, a two-year high.

Pete Ferns, Director of NatWest Business Banking, said: "Advances in technology have clearly helped small businesses make the most of the opportunities available to them around the world. In the last 20 years, we have seen the growth of computer usage, the introduction the worldwide web and the development of broadband services - all of which give small firms another helping hand to make their business a success."

Notes to editors:

  • The NatWest SERTeam Quarterly Survey of Small Business in Britain is carried out by the Small Enterprise Research Team, an independent charity based at the Open University Business School.
  • Copies of this and previous surveys are available at a cost of £40 each or £120 for one year’s subscription from Small Enterprise Research Team (SERTeam), Open University Business School, Walton Hall, Milton Keynes, MK7 6AA. Tel: 01908 655831.
  • Small businesses wishing to participate in this survey, should telephone 01908 655831 or complete the survey online on www.serteam.co.uk. There is a free copy of a summary of the survey findings for those completing the questionnaire.

Media Enquiries:
Caroline Harris
NatWest Media Relations
Tel: 020 7672 1931
Email: caroline.harris@natwest.com