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Internet now in Half of British Businesses
17/10/2000



Virtually half (48%) of all establishments in Britain are now connected to the Internet, according to findings from the new Business Internet Survey published by NOP.

The first half of 2000 saw a 20% increase in Internet take-up, with small businesses in particular exceeding the average and recording a 22% increase in Internet uptake, equivalent to around 70,000 new Internet connections among businesses with fewer than 10 employees.

Almost half (47%) of Internet-using businesses now cite the use of email/better communications as the reason for establishing an Internet connection, while 25% admit to doing so in order to keep up with other businesses. Not surprisingly, SMEs allow greater levels of access within the establishment (on average, 67% of employees) compared to the larger end of the market (48%) of employees).

Amid the continuing debate over the cost of Internet access, Freeserve is emerging as the dominant Internet Service Provider (ISP) to businesses with fewer than 10 employees, with BT having captured the largest market share among SMEs and mid-size corporates.

According to Carl Geraghty, Business Internet Project Manager at NOP, “Growth in Internet use by British business has been driven by lower access costs, the concerted efforts of ISPs, government initiatives and the establishment of the Internet as a mainstream application in the consumer market. SMEs are beginning to see tangible business benefits, but the surge of new, inexperienced entrants creates a need for effective support from the initial access stage through to web site management and the building of the confidence necessary to make the leap to e-commerce.”

NOP screened 14,395 commercial businesses and conducted 711 follow-up telephone interviews with senior decision-makers in Internet using establishments between 1 June and 31 July 2000.