Small businesses are investing in their websites in a bid to combat the economic downturn, according to research by Amplify Research.

The survey found that 43% of small companies in the UK are now investing in improving their websites in a bid to increase online sales.

Just under 30% of respondents said that social networking sites such as LinkedIn, Twitter and Facebook are good business-to-business networking tools.

"It is hugely reassuring to learn that more small firms are investing in improving their Websites. As the home market struggles to recover it is important that businesses appeal to international patronage," said Stephen Alambritis of the Federation of Small Businesses.

"The global economy has meant the death of distance in commercial transactions and what better way to take advantage of this phenomenon than to invest in online collaboration."