SMEs 'cynical about the hype' of ecommerce

According to research conducted by software firm Sage, 25 per cent of companies surveyed view the internet as a hyped-up fad and cannot see how it will assist in making their business more successful.

A further 30 per cent do not know where to begin with ecommerce and said something else always takes priority.

Paul Stobart, chief operating officer at Sage, claims the hype surrounding the internet has created a suspicious attitude towards it. He said: "SMEs are cynical about the hype and do not take time to understand what's really on offer."

Stobart said it's important for SMEs to understand what the internet can offer. "The perception is that it will cost thousands of pounds to get online but it's up to vendors to get the message out that it doesn't," he said. "SMEs already spend a small fortune on post without realising the saving that can be made by email alone. They just see it as a novel idea."

Stobart advises SMEs not to ignore the web and encouraged them to get involved and move at their own pace. He said: "Do not attack it head on, but let it develop as the company does."

Stobart added that only six months ago 28 per cent of SMEs had a web presence, compared to 42 per cent today. He predicted that within the next five years all UK SMEs will have some form of internet presence.

Sage, which supplies accounting and payroll software to SMEs, spoke to 500 small businesses across the UK to compile the study.