Research among very small businesses also reveals chasm in confidence between those with, and without, a website
New research from GoDaddy, the world's largest technology provider dedicated to small businesses, reveals that 60 percent of the UK's very small businesses – who constitute almost one fifth of Britain's small business population – currently lack their own website, and are potentially missing out on future growth as a result.
The research also found that independent business owners that already have websites are markedly more confident about the prospects of their business than those without, suggesting a chasm between Britain's digital "haves" and "have nots."
54 percent of those without a website fear their business will fail to grow within the next 3-5 years. Meanwhile, 60 percent of businesses with a website believe they could grow by anything up to 50 percent in the same timeframe. In fact, the survey found that 56 percent of businesses experienced increased growth in the two years after their website launched.
The research, conducted among over 500 of the UK's very small businesses – defined as those with five employees or less – unearthed some of the most common factors for a lack of digital uptake:
Over a third (35%) felt their business was simply too small to warrant a website
One in five (19%) cited a lack of time was preventing them from creating a website
A further one in five (19%) feel cost was the major prohibiting factor
Despite these concerns, a major wave of very small businesses expect to take advantage of having a robust digital identity soon, with one-third (33%) planning to create a website within the next two years. While growth is certainly a motivating factor for building a website, these firms realise that their business could be in trouble if they don't. In fact, 75% of small businesses with a website said they think they have a competitive advantage over businesses without.
Many still have work to do before they can turn their website into a reality however, with two-thirds (66%) yet to take the crucial first step of picking out a domain name.
"There are over 5 million small businesses in the UK, with a further 500,000 new businesses set to be added this year alone," said Stefano Maruzzi, VP EMEA, GoDaddy. "While we take it for granted in this digital age that everyone is online, the reality is many of the smallest businesses are still to make the leap. Large and medium-sized companies learned a long time ago that the most effective way to reach customers globally was through the Internet. It seems that many of their smaller peers are about to do the same, which will change how they grow, how they communicate and perhaps even what they sell. That could have a big impact on small business growth and transformation in the UK, as well as economic growth as a whole."
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