Almost overnight, brochure sites started flying up and people have been taking the internet pretty seriously ever since. But has going online paid off for small and medium-sized enterprises (SMEs)?

Some say no. Cranfield University's Professor Andrew Burke has just published a study into the internet reliance of small businesses in the UK that shows only 16 per cent feel the internet has increased their operational efficiency.

I find this statistic shocking. The internet has changed every facet of business — marketing, finance, distribution, communication ... everything.

How could fewer than one in six believe that this does not make doing business faster, cheaper and more effective?

Professor Burke says the explanation lies in the fact that many SMEs have come to rely on the web more than they realise. I think he could be right. Perhaps the benefits are so numerous and pervasive that people have trouble actually perceiving them.

He told the Daily Telegraph: 'There is no question that the internet has enhanced the performance of SMEs by enabling them to be more innovative, more up to speed, negotiate better with suppliers, make greater use of outsourcing and to operate more flexible hours.'

At the same time, the internet has drastically increased the pace of business. Transactions that used to take days can now be completed in a matter of minutes and the flat earth means there is more competition and easier access to markets. Small businesses have to work harder than ever to make their presence felt — especially online.

The sting in the tail, according to Professor Burke, is that the uptake in internet use by SMEs has been so dramatic that most of these organisations now share these same benefits and there is no real competitive advantage.

A lack of international boundaries due to the internet also worried many of those taking part in the study. Sixty-two per cent acknowledged that the internet had increased competition from foreign traders.

Security was also an issue, with one in three participants believing that confidential information was harder to protect.

The study shows small businesses are uncomfortable about the loss of direct customer contact and protest that the 'sheer volume of information sources available online is frustrating and time-consuming'.

Such issues are important, but they are a fact of modern day life and SMEs must make themselves heard above the din. The average city-dwelling person is exposed to more than 3,500 marketing messages daily.

That is 24,500 messages a week and 1.2 million every year.

Advertising industry statistics show it takes nine or more impressions for a business to be remembered by a potential customer. So businesses have to be relentless in following up opportunities online to make it worthwhile. This is unlikely to be practical for most small enterprise owners, who need to be focusing on core business.

Fortunately, there are now tools available which automate a lot of the online work required. You could capture new leads, respond to customers, deliver products and track all your prospects and clients without lifting a finger thanks to automation.

Auto-responders, or preprogrammed e-mail responses, are an excellent way to build a prospect database. Start by offering digitally downloaded special reports, coupons or other 'free' incentives to entice visitors to share their names and e-mail addresses. When the prospect's data is entered, it is automatically placed in the database and triggers a response, such as: 'Thank you for subscribing. Here is our special report.'

The next step in automation involves accepting digital payment. This has never been easier or cheaper thanks to PayPal.com or by setting up a merchant account and an online shopping cart.

These systems are surprisingly easy to setup, operate and maintain and they allow SMEs to transact business 24 hours a day, seven days a week.

And there are a lot of free, clever ways to improve your Google page ranking by improving your meta tags, headlines and website navigation. Creating a company blog can work wonders in driving traffic to a website.

The adage 'with every problem there is opportunity' holds true in the online world. The internet has given SMEs some challenges in terms of competition, but its benefits drastically outweigh the problems. I have always thought that issues created by technology are most effectively solved using technology – and automation proposes many solutions for SMEs.


>>Sherrilynne Starkie is the managing partner of Strive Public Relations, a communications consultancy in the Isle of Man. She provides her views on business and technology each week in Tech Talk. Visit her business blog Strive Notes for frequent updates.
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