The internet is one of the few areas in the UK relatively unaffected by the recession, with online shopping in the UK rising 25% in 2008.
However, recent research by internet company 1&1 Internet Ltd found that 46% of small firms in the UK with one to five employees do not have a website.
This is despite the fact that 41% of those surveyed recognise that a website could increase their company's sales. The main factors listed by small firms as to why they do not have a website are cost, time and feeling they lack the required expertise to set up a site.
The research also revealed that small firm owners who do not have a site significantly over-estimate the cost and time involved in setting up a website.
46% of small firms in the UK with one to five employees do not have a website
Over 30% of firms that are not online estimate the cost of setting up a website to be double the £150 required, and 25% believe the cost is over £400.
28% of firms surveyed without a website thought that it takes over seven hours to build any type of website and only 14% of firms correctly identified that it can take under 30 minutes to create a simple website using online website packages.
"Whilst many small companies today leverage the web with increasing proficiency, too many enterprises remain excluded. Every business owner should at least be aware that today a website is simply and affordable to source,' said Oliver Mauss, CEO of 1&1 Internet Ltd.
Of those firms surveyed that have launched a website 80% reported that their site generates revenue for them, with the average revenue produced standing at a respectable 10%.
With a recent survey by the Office of Fair Trading (OFT) finding that 50% of consumers - up from 26% in 2006 - believing shopping online is as safe as in purchasing goods in a store it is clear that consumer habits are moving online.
"Online retailing is the future for many businesses and increasingly important to the economy," said John Fingleton, OFT chief executive.
With website packages offering a simple website that is set up in less than an hour and for around £150, it is clear that all small firms have no excuse to not have an online presence.
