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UK SMALL BUSINESSES KEEN TO EMBRACE NEW TECHNOLOGY, YET LACK IT VISION THAT COULD SAVE TIME AND MONEY

31/01/07 | 14:21

The results of the survey were unveiled today at the UK launch of Windows Vista and the 2007 Microsoft Office system, held at the British Library.

Whereas IT was once used mainly for accounting and book-keeping - and continues to be - communication with customers and suppliers now comes in a very close second. 85 percent of respondents stated this as one of the main activities they carry out on their computer. Furthermore, Britain is fast becoming a nation of ‘web keepers,’ with 82 percent of small businesses surveyed embracing the internet and having a web presence.

However, time-constrained owners and senior managers are having to spend too much time on tasks that are not considered a priority. Instead of devoting time to client management and customer service, they are getting bogged down by looking for files and records, dealing with government red tape and fixing IT problems associated with IT security and data storage. Simple changes can help business owners reprioritise their workloads to achieve increased efficiency and reign-in costs. Areas highlighted in the research include:

  • Loss of data is considered to be one of the key reasons for business inefficiency, yet half of small businesses are not backing up their data on a daily basis. With the DTI¹ estimating that seven out of ten companies go out of business after major data loss, this is not an issue to be taken lightly.
  • IT security failures are costing two-thirds of the businesses surveyed an estimated £1,259 per annum. Yet two-fifths of respondents have not even installed a basic firewall onto PCs and over half don’t automatically patch or update all the PCs in the business. Windows Vista now incorporates more security features, including firewall protection.
  • The estimated cost of outsourcing the production of marketing materials is significant, at just over £6,000 a year. Yet small businesses are not fully harnessing their PCs to develop marketing materials themselves, which can easily be done through programmes such as the 2007 Office system.
  • While 82 percent of small businesses surveyed have a web presence, less than a third of them are using it to trade. This represents a huge potential growth opportunity through e-commerce.
  • Finally, the majority of small businesses surveyed claimed that it was their personalised approach to customer service that set them apart from their competitors. However at least a fifth of businesses are not using their PCs to maintain client and supplier databases.

David Frost, Director General, British Chambers of Commerce, said: “This research shows how far small businesses have come in recent years and how much they all rely on their computers. It is particularly striking how email communication is so widespread. But too much time is still being taken up fixing problems that could have been avoided. This is time they can ill afford to waste because it takes them away from those activities that really impact their success, like dealing with customers. Regularly performing some simple tasks like data back-up or scanning for viruses can make all the difference and now this couldn’t be easier to do.”

Scott Dodds, head of small and medium business, Microsoft UK, added: “With 74 percent of small businesses managing their IT without specialist help, they need computer systems that are easy to use and manage. It is encouraging to see that small businesses increasingly understand the value that IT can deliver. Now, we hope they will go one step further and explore how it can better support their business. We believe that the systems we are launching today will help small businesses focus on the issues that are most important to them.”

Windows Vista and the Microsoft Office 2007 system are available at all major UK retail outlets from January 30 2007. The products are also available to any company with more than five PCs through a licensing programme called Open Value. For further information please visit: http://www.bcentral.co.uk

Specific information on Windows Vista is available at: http://www.bcentral.co.uk/products/microsoft-windows-vista-business-edition-for-small-businesses.mspx

Specific information on the 2007 Office system is available at: http://www.bcentral.co.uk/products/microsoft-office-2007-small-business-edition-overview.mspx

ENDS


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NOTES TO EDITORS:

All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 785 managers/ directors who work in a business with 2-50 employees. Fieldwork was undertaken between 4th - 11th January 2007. The survey was carried out online. The data has not been weighted.

About BCC
The British Chambers of Commerce (BCC) is the National Voice of Local Business.
The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce serving business across the UK, which employ over five million people.

About Microsoft Corporation
Founded in 1975, Microsoft Corporation (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realise their full potential.

For further information about this release, please contact:
Weber Shandwick Technology
Tel : 0207 067 0000
Email: wow@webershandwick.com

For information on Microsoft Ltd, please contact:
The Microsoft Press Centre
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Fax: 0870 20 77329
Email: ukprteam@microsoft.com
www.microsoft.com/uk/press