Monday, December 12, 2011

Small Business Grant | "Small businesses 'need faster broadband services'"

By : Stephen Wilkinson
Source : http://www.ashdowngroup.com
Category : Small Business Grant 

The UK's economic growth could be constrained unless the government makes the right policy decisions on high-speed broadband, it has been claimed.

According to the Federation of Small Businesses (FSB), a lack of access to super-fast download speeds is preventing many firms from using e-commerce to drive exports.

Of those surveyed, nine per cent said they had no access to next-generation broadband, and a further 22 per cent have no access at one site at least.

The FSB claimed that online trading could be much more profitable for UK companies if small businesses can take advantage of a full range of online services.

A fast, reliable and guaranteed broadband service for small businesses, irrespective of location, is needed to ensure economic growth, the organisation said.

The Con-Lib coalition has made a commitment to ensure there is universal broadband coverage by 2015, and super-fast broadband coverage for 90 per cent of the population in each local authority by the same date.

However, the FSB is concerned that a divide will still remain between urban and rural areas, as private sector investment remains focused on the major towns and cities.

John Walker, national chairman of the FSB, said online trading has helped empower small businesses to find new markets, sell new products, try new models and compete on an equal footing with larger businesses.

"Online trade has great potentials for small businesses but it still has its barriers. These must be removed," he said.

"The biggest obstacle for many small businesses is the lack of broadband speeds and so as a result they cannot compete online."

Mr Walker called on the government to ensure all small businesses are connected and have access to the broadband speeds they need to allow those that want to, to do business online.

Last year, a Boston Consulting Group report commissioned by Google found that online trade is worth £100 billion per year to the UK economy.

Source : http://www.ashdowngroup.com/news/small-businesses-need-faster-broadband-services--news-801235794