The vast majority of small businesses predict significant online growth in 2008 despite the challenging economic circumstances.

Research carried out by Loudhouse Research on behalf of business ISP Star Technology Services suggests that 85% of small business owners anticipate a rise in their online sales.

"The digital high street is now a reality, and presents an opportunity for SMBs to compete on a level playing field with larger ‘big-brand' competitors," said Ben White, chief executive of Star.

"With the economic outlook uncertain for 2008, the internet represents a viable lower-cost way to increase reach and drive sales activity."

The survey also suggested that 2008 would be the year when small businesses finally began to adopt Web 2.0 technologies.