Partner Article

Small businesses put off engaging in e-commerce

Significant numbers of small and medium sized enterprises (SMEs) are being deterred from e-commerce, according to the Federation of Small Businesses (FSB).

The organisation has highlighted that despite the fact that the geographical reach of the internet makes it possible for SMEs to compete in the global market at low cost, just 18% of SMEs are selling online. Less than one percent of those derive all of their sales through the internet. The risk of credit card fraud is a significant concern to 19% of businesses, yet only 6% have actually experienced on-line credit card fraud. Recent recommendations made in a report on Personal Internet Security by the House of Lords Science & Technology Committee include increased research into e-crime as well as e-crime victims having the opportunity to report Internet crime to the police and to receive a crime number in return, just like any other type of crime.

Bill Keenlyside, FSB North East Policy Chairman, said: “The extent to which the UK’s SME sector is engaged in e-commerce is an issue of considerable economic significance. We applaud the Lords Committee for having highlighted and recommended proposals that are essential to Internet trade moving forward - but recommending and doing are two different things.

“E-crime needs to be given the same status as crime that is committed against a bricks and mortar business. Only when this is accomplished, by implementing the Lords recommendations, can more small businesses benefit from having a stronger online presence. Customers will also benefit from the increased choice and convenience that online security can bring.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .