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  • 1. T H E B A S E K I T S M A L L B U S I N E S S R E P O R T:HOW UK SMALL BUSINESSES ARE GRAPPLING WITH NEW TECHNOLOGY M AY 2 0 1 2
  • 2. Content1 Foreword2 Small Businesses Failing To Impress Online3 Facebook Now Top Source For New Business4 Enterprises Crashing Out Rather Than Cashing In Online5 Small Businesses Falling Behind On Mobile Custom6 Methodology and Sources
  • 3. ForewordHere at BaseKit, we believe even the This report outlines the key findingssmallest business needs to be online from speaking to a cross section ofwhich is why we try and make it as easy businesses, which between them, formas possible for every new start-up and the backbone of the UK economy. Itsmall enterprise to create an effective looks at how firms are embracing socialonline presence. media to market themselves through to the impact poor web hosting andSomewhat surprisingly however there subsequent website crashes - can haveare still 60% of UK small businesses on their bottom line.that have yet to get online despite theInternet being an all pervasive presence One trend that emerges strongly is a fearin our lives. And, the businesses that amongst small businesses that, if theydo have an online presence sometimes dont harness the web more effectively,struggle to keep pace with, yet alone they are in danger of becoming digitalembrace the possibilities that the web dinosaurs.can offer them. We have used these insights and thePerhaps its not so remarkable when findings to help us establish The BaseKityou put yourself in the shoes of a small Learning Centre - an online academybusiness for a moment. Its not easy out for small businesses to find out all theythere. The pace at which technology need to know about running and growingis changing is just extraordinary and their business online. Weve createdconsumers expectations of what they a series of online guides written bywant a website to do, or not do, has professionals to help firms get the mostchanged with it along with the devices from the internet from SEO optimisationthey use to access the internet. through to social media and online marketing.We spoke to just over 500 smallbusiness owners, from one-man bands We hope you enjoy reading the report.up to small partnerships, to find outjust how well they are faring with the Simon Besttechnological advances and whetherthey are harnessing them to their Simon Bestfull advantage. Founder, Basekit Digital Dinosaurs 1
  • 4. Small BusinessesFailing ToImpress OnlineThey say you never get a second chance Small businesses are in danger of seriouslyto make a first impression and its a phrase Three quarter of the small lagging behind when it comes to their webthat rings true for hundreds of thousands businesses we spoke functionality:of small businesses nationwide, accordingto our research. to admit having a well- Changes functionality % designed and functioningDespite being the equivalent to a shop site is important for theirwindow, just one in six small businesses Able to update their own sites 67% reputation - as well as critical(16%) believes they have a website they Online payments accepted 25%can be very proud about. to drumming-up new leads. Yet they are really struggling It can host a blog 22%One in ten small business owners to know how to keep up with It can host video 22%(11%) say their websites use out of datetechnology and a further 11% describe the latest developments and Integration with social media 19%their companys online presence as either are scared of becoming so- SEO optimised 18%poor or embarrassing, according to our called Digital Dinosaurs. Process online bookings 18%figures. Simon Best Optimised for mobile devices 9%A quarter of small businesses (25%) say No additional functionality 18%they are envious of their competitors The ways that small businesses currentlywebsites as they struggle to keep pace describe their website:with technology change and maintain asite that is customer-friendly. For many small enterprises, their website is their windowKeeping up with changing technologyis a real issue for half of the small to the world, yet so manybusinesses we polled as they admit to feel poorly served bygrappling with ecommerce functionality, what theyve created formobile friendliness and search-engine themselves online.optimisation. Only a quarter of businesses(25%) are able to process transactions Simon Bestonline currently and only 9% have a sitethat is compatible with mobile phones ortablets. 64% Its adequate The aspects businesss would change 23% Its up to date about their website:The changes that businesses would like to 11% Its out of datemake include better design and cheaperhosting as well as better analytics and the 11% Its poor and embarrassingopportunity to change and refresh content 5% Its perfectthemselves. 32% Better design 17% Ability to change content oneself 16% Cheaper hosting 14% Better analytics 7% Better technical support2 Digital Dinosaurs
  • 5. Facebook Now TopSource Of New CustomersFor Small BusinessesOver one third of UK small businesses The research shows that while a lot of Channels that businesses use to marketsay that they now use Facebook to drum small businesses are forward-thinking their businessup new customers more than local when it comes to the web, there are a lotdirectories such as Yellow Pages and of others that have yet to get on board.Thomson and substantially more thanprint or online advertising. Small businesses areWe found that 36% of small businesses shifting their marketingin Britain use the social network to marketthemselves, where just a quarter say they to lower-cost media likerely on local directories (27%) as a source Facebook and Twitter andof new customers. away from legacy media like the directories. They tell usTwitter has also become popular withsmall businesses and their owners over that one-to-one marketing is 36% Facebookone-in-six (17%) use the site to scout their most efficient and most 27% Local business directoriesfor new customers and to market their successful way of generating 21% Print advertisingservices and the micro-blogging site is fastcatching up with those who say they use new business the fact 20% Online advertisingprint (21%) or online (20%) advertising for that Facebook has become 17% Twittertheir marketing. the number one source of 14% Trade publications new business within just aOur research also found that, while vastnumbers of the UKs 1.1 million small few years of its creation is The simple truth is that,businesses are online and are using sites remarkable.