Free Lunch for Small Business? |
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Half of the UK's internet-connected businesses have considered using one of the new free internet services, such as that offered by Dixons Freeserve. The latest McCannics e-survey reveals that exactly half of the 52 businesses surveyed by e-mail have considered using a free ISP (Internet Service Provider). Some of those which have considered changing have had problems with the free ISPs or have decided that their current ISP offers better service, but these are outnumbered by those which had positive comments on their experience of free ISPs. Other respondents are using a free ISP, but only as a backup to their paid-for connection. Whilst there have been concerns about free ISPs, particularly in terms of reliability of connection and high support charges, they are clearly an attractive proposition for the most cost-conscious small businesses. As there are well over 3.6 million businesses in the UK with fewer than 10 employees, this is a massive market for Internet Service Providers. Businesses wanting a more professional internet appearance can use a free ISP for a dial-up connection while also paying one of the companies which specialise in hosting internet domain-names. This way, businesses can now have their own domain name for their web-pages (such as www.mccannics.co.uk) and e-mail while paying little more than they previously would have done for a dial-up connection with a less distinctive name. This also gives businesses more flexibility as they can try out different free ISPs to browse the web and pick up their mail and can always transfer their domain-name to another company if they have problems with the company hosting their web-site. If the free ISPs can demonstrate a consistently reliable service and really can be profitable just from the fraction of the telephone call charge which is passed on to them then small businesses, at least those with enough technical knowledge to avoid needing to call their support lines, may well find that there is such a thing as a free lunch. | |
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Most (73%) of respondents have a dial-up modem connection to the internet, while 29% have an ISDN connection. Only 6% currently connect to the internet using a GSM mobile phone. 12% of respondents have a leased-line or permanent connection to the internet (see chart, right). Some businesses of course use a combination of more than one of these means of connection.
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"What type (or types) of internet connection does your business
use?"
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For the first time in four months, there is an increase in the proportion
of e-businesses reporting that their sales were up over the past year.
Some 62% said that
their sales were higher in March 1999 than in March 1998, while only
one quarter said that their sales were lower. This is the best
result for a year (see chart) and suggests that looser fiscal and monetary policy
is at last feeding through into improvements in the economy.
Pressures on prices seem to remain subdued, however, with only 36.5 per cent (lower than in the previous survey) reporting that their selling prices in March 1999 were higher than in March 1998. Some 15 per cent had cut prices over the year. |
"Was your sales turnover
in the month just ended higher, about the
same, or lower than in the same month last year?"
Note: Chart shows percentage balances (percentage saying higher minus percentage saying lower). Earlier surveys include late responses and so may differ from figures published elsewhere.
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The twenty-first survey questionnaire was sent out on 15th April 1999 and by 19th April responses had been received from 52 businesses across the UK.
The e-survey has been operating on a pilot scale for well over a year and is now ready to show its full potential. Organisations which would like to collaborate should contact McCannics. Individual UK-based businesses which would like to take part in the survey should send a blank e-mail to volunteer@mccannics.demon.co.uk.
All individual replies will be kept strictly confidential. Only anonymised results will be published, and your e-mail address will not be passed on to any third party.
E-mail us with comments, queries or suggestions for future topical questions at: esurvey@mccannics.co.uk
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