Small firms in the UK have a love-hate relationship with the internet,
according to research published by the
Cranfield
School of Management.
The research found that 97 per cent of UK SMEs now have email, 94 per cent
have broadband and 84 per cent have a website, suggesting that they have
embraced the internet for business.
However, while six out of 10 respondents said that the internet had increased
their operational efficiency, 46 per cent believe that it has raised the
complexity of running their business.
The rise of online services and prevalence of the internet has forced SME
managers to raise their game, and has made their job more challenging.
Ironically this has occurred mainly because of the popularity of the internet
among consumers and SMEs, which has created a more competitive market and more
choosy customers.
Andrew Burke, co-author of the report, and a professor at Cranfield's
Bettany
Centre for Entrepreneurial Performance and Economics, said: "There is no
question that the internet has enhanced the performance of SMEs.
"It has enabled them to be more innovative, more up to speed, to negotiate
better with suppliers, make greater use of outsourcing and operate more flexible
working hours.
"The sting in the tail is that this uptake in internet use has been so
dramatic that most SMEs now share these same benefits and few can garner a
competitive advantage as a result."
Professor Burke likened the situation to a game of golf where a new driver
becomes available that can hit the ball an extra 30 yards. If everyone uses the
driver eventually no player has an advantage.
"At the same time no player can afford not to use one or they would be 30
yards behind everyone else. It simply becomes necessary in order to compete,"
he said.
SMEs also feel that broadband suppliers use complicated technological
language, and that the internet hinders direct contact with customers and other
businesses.
Respondents also reported that the sheer volume of online information sources
is frustrating and time-consuming.
The research was commissioned by
Pipex, which
was acquired by
Tiscali
in July last year.
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