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       ...
Content1   Foreword2   Small Businesses Failing To Impress Online3   Facebook Now Top Source For New Business4   Enterpris...
ForewordHere at BaseKit, we believe even the       This report outlines the key findingssmallest business needs to be onli...
Small BusinessesFailing ToImpress OnlineThey say you never get a second chance                                            ...
Facebook Now TopSource Of New CustomersFor Small BusinessesOver one third of UK small businesses          The research sho...
Small BusinessesCrashing Out RatherThan Cashing In OnlineA quarter of UK small enterprises – or       Impact of website cr...
Small Businesses FallingBehind As They Miss OutOn Mobile CustomUK small businesses are missing out on                     ...
Methodologyand sourcesAbout the researchBaseKit.com commissioned Opinium Research LLP toconduct a research poll amongst 51...
Digital dinosaurs
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Digital dinosaurs

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Digital dinosaurs

  1. 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. 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. 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 don’t 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 it’s 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. It’s 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. We’ve createdconsumer’s 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. 4. Small BusinessesFailing ToImpress OnlineThey say you never get a second chance Small businesses are in danger of seriouslyto make a first impression and it’s 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 company’s 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 competitor’s 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 they’ve 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% It’s “adequate” The aspects business’s would change 23% It’s up to date about their website:The changes that businesses would like to 11% It’s out of datemake include better design and cheaperhosting as well as better analytics and the 11% It’s poor and embarrassingopportunity to change and refresh content 5% It’s perfectthemselves. 32% Better design 17% Ability to change content oneself 16% Cheaper hosting 14% Better analytics 7% Better technical support2 Digital Dinosaurs
  5. 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 UK’s 1.1 million small few years of its creation is “The simple truth is that,businesses are online and are using sites remarkable.” for a small business withsuch as Facebook successfully, there Simon Bestare still 660,000 that have yet to get customers who may bethemselves online at all. This is despite under 40, if you’re not onthe fact that three quarters (74%) of those the web then you are more-that do have a site say it has becomecritical to drumming-up new leads and to or-less invisible. We believetheir reputation as a company. that every small business in the UK should be able to take advantage of the power of the internet as a tool to grow – and should be able to create a professional website cost-effectively.” Simon Best Digital Dinosaurs 3
  6. 6. Small BusinessesCrashing Out RatherThan Cashing In OnlineA quarter of UK small enterprises – or Impact of website crashes on smallnearly 290,000 individual businesses - businesses: “Start-ups and enterprisehas seen their websites crash or become companies aren’t alwaysinaccessible to customers due to poor helping themselves to makeweb hosting, our research shows. the most of what the web hasOne in ten small businesses impacted by to offer. We were surprisedweb crashes believes the unscheduled by how little functionalitydown-time has significantly impacted their some websites have –trading. meaning companies aren’tThree quarters (74%) of small businesses cashing in on the growingsay being online is important to drumming ecommerce trend.”up new leads and to their companyreputation. Yet website crashes are 10% Crash had an impact Simon Besthampering business success, as is trying 7% Crash didn’t impact muchto keep pace with changes in technology 6% Crash didn’t impact at alland customer behaviour says the BaseKit Importance of a website to business 65% Never experienced a crashSmall Business Report. reputation: 11% Can’t remember “Small businesses invest a lot of time and resource in creating their websites so it’s understandable they get frustrated when poor web hosting means that their sites crash resulting in lost customers and revenues.” 38% Extremely important Simon Best 36% Slightly important 17% Neither important or unimportant 6% Not very important 3% Not important at all4 Digital Dinosaurs
  7. 7. Small Businesses FallingBehind As They Miss OutOn Mobile CustomUK small businesses are missing out on Levels of concern about keeping pacevital sales and a source of new customers “Access to the internet is the with technology change:as just one-in-ten (9%) say their websites fastest-growing technologycan be used with mobile phones andtablets in mind. trend. The number of British consumers withHowever, our research found that 45% smartphones has almostof internet users use a mobile device toaccess the web and that 6% of internet doubled in the past coupleusers have shopped online from their of years and is now nearingmobile phone and that they are spending 50%.up to £1.3 billion on “on the move”purchases. Simon BestThe risk is that small businesses will missout in the belief that creating a mobile- “Being online is good,friendly site is too costly or too complicated.And with reports predicting that purchases but having a site that isn’tmade using smartphones could make up built with this generation of 11% Very concerned12% of the value of all ecommerce, it’s an mobile internet users in mind 40% Slightly concernedarea that smaller companies can’t afford means small businesses 38% Neither concerned or unconcernedto miss out on. are missing out on a major 10% Very unconcernedThe “Digital Dinosaurs” research found source of new customers 2% Don’t knowthat falling behind the pace of technology and sales.”change was something that preoccupies Simon Bestsmall business – with half saying they are“concerned” or “very concerned” that theyare being overtaken by changes includingthe advance of mobile internet usage. Digital Dinosaurs 5
  8. 8. Methodologyand sourcesAbout the researchBaseKit.com commissioned Opinium Research LLP toconduct a research poll amongst 510 small businessesin April 2012.All the business owners polled ran enterprises that employedbetween 1 and 49 staff.According to latest figures (2011) from the Departmentfor Business, Innovation and Skills, there are 1,141,950private enterprises with between 1-49 employees in the UK,responsible for 7 million people and turning over£864 million a year.The fieldwork took place between the 20-27 April 2012 andwas conducted online. According to BaseKit Insight Data, 60%of SMEs are yet to get online.For more information, contact the BaseKit press office on020 7566 9747 or email basekit@hopeandglorypr.com.About BaseKitBaseKit.com was founded in 2009 and our success has madeus one of Europe’s most exciting tech start-ups. We nowsign up 40,000 new paying customers every single month.BaseKit’s technology makes it easy for small businesses tocreate an effective online presence and is localised in 10languages globally.BaseKit offers a range of sites – all designed to be compatiblewith mobile access, as well as traditional PCs – with a fullecommerce site costing just £100 a year and a service thatenables a business to get started with a site for free. Visitwww.basekit.com to find out more.The BaseKit Learning Centre is an online academy for smallbusinesses to find out all they need to know about runningand growing their business online. We’ve created a seriesof online guides written by professionals to help firms get themost from the internet from SEO optimisation through to socialmedia and online marketing. Visit www.basekit.com/learning-centre to find out more.6 Digital Dinosaurs

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