SMALL BUSINESS
BRITAIN’S smallest firms lack the time, money and skills to move their business online, leaving nearly half without any digital presence.
Just 38 per cent of micro-businesses – those with fewer than nine employees – have a website and more than 85 per cent lack basic digital skills, according to research by domain registration company 123 Reg.
Some 73 per cent of micro-businesses do not advertise online, and 42 per cent lack any form of digital presence. Only 53 per cent said their websites were easily read on a mobile device. This is despite the fact that more than 70 per cent of such firms agreed that having strong digital skills is critical for success and that it is now cheaper and easier than ever to get online.
Tom Thackray, director of innovation at employers’ group the Confederation of British Industry, said: ‘This research emphasises the importance of closing the digital divide in the UK. Breaking down the barriers for microfirms to adopt digital technologies is essential for unlocking productivity and growth in the economy.
‘The know-how exists in the business community and for micro-businesses getting started on their digital journey, building these connections and access to tangible resources is crucial.’
Micro-businesses are worth £763billion to the economy and getting online can boost performance by an average of 14 per cent, according to market researcher YouGov.
Charlotte Allen, founder of printed fashion and accessories brand Klements, said: ‘I discovered that for my brand, engaging customers on social media and building a relationship leading them to my website was what achieved sales.
‘It is clear to me now that the whole of your online business needs to link and feed into one another. And then things get interesting. Inexperience in the online world slowed my brand down in the early years.’
123 Reg has created free online training lessons for small firms. Its digital skills assessment provides an online health check and has links to helpful online videos and blogs.
Nick Leech, digital director at 123 Reg, said: ‘Micro-businesses are time poor and resource light, juggling multiple hats daily. Lengthy digital guides that may work for larger firms are not right for them. What micro-businesses need is a direct steer on things they should implement to help them grow.’
He added: ‘Costs for the latest mobile-optimised website builder products are typically £5 a month, enabling access to technology that would have cost tens of thousands of pounds just a few years ago.’
Last year, Martha Lane-Fox, who co-founded travel website Lastminute.com and now champions digital literacy, used her Dimbleby Lecture to lay out three aims of her dream of ‘Dot Everyone’, a national institution to make Britain the ‘most digital nation on the planet’.
She said Dot Everyone should educate everyone from all backgrounds about the internet, that it must put women at the heart of technology, and that it should focus on the moral and ethical issues of the internet.
123 Reg’s free training can be found at obt.123-reg.co.uk.