Small UK businesses think the recession will end in early 2010.

In a survey of 7,200 small UK businesses, BT Business reports that 75% of them think the business cycle will turn up next year with 35% saying they think it will improve in January next year.

Since there are 4.7 million small businesses, the positive response will to some extent be self fulfilling.

In addition, in the survey, 45% of small firms reported that their business had  been improved due to the pressure exerted by the economic slump, and 41% say that they will diversify as the financial climate improves.

While half say that their business revenue is currently down, with 25% saying the drop is over 10%, 60% are upbeat about their expected results next year.

During the downturn, half of small businesses borrowed from family and friends rather than their bank.

The survey reports that small firms want more easy access to finance, legal advice and assistance in developing their business.

However, the restructuring firm, Begbies Traynor, says that over 130,000 small businesses are in financial trouble and that in previous recessions, small business failures reached a peak between one and two years after the UK economy returned to growth.

Ernst and Young agrees with them, suggesting that it will be 2012 before economic growth is restored to its long term average.

So small companies think that the end of the economic gloom is in sight but it appears that there will be more pain for them as growth returns.

We help UK small firms by providing them with qualified prospects from our Local Search facility in our UK Business Directory, at no cost to them. Most of the 1.6 million businesses listed in our directory are small firms.


Monte Huebsch, CEO

The UK government has a goal of getting everyone online within three years.

Research by The Office of Digital Inclusion says that there are 14 million people in the UK who do not have internet access.

The inclusion of these individuals should produce a benefit of £22 billion including £8 billion income provided by additional online sales.

The estimate of the public sector saving is substantial, with £900 to be saved by a more economical contact system with clients, when those currently offline have access.

A number of companies are involved in assisting with the project, including Google and BT.

£12 million in funding will be provided to a number of organisations, to be controlled by Odcom, the regulator.

An essential aspect of making the project a success is for broadband to be less expensive and have wider coverage, particularly to rural areas.

Organisations which use self service to improve economies in providing their services will benefit greatly, with fewer employees required. Also, the option of working away from an office becomes more possible.

The research indicates there would be an income increase for unemployed people who gain online access due to enhanced work options and incapacitated individuals would also benefit in being able to work remotely.

As more commerce and communication occurs via the internet, not being online is a major issue.

We help effective communication by having extensive listings on Google for our UK Local Search facility in our Business Directory. We provide prospects to the 1.6 million businesses listed, at no cost to them.

Monte Huebsch, CEO

One in three UK small businesses has been affected by fraud.

Research from Fellowes and the National Fraud Authority reports that a third of small UK firms have suffered loss due to fraud and only 3% of UK consumers are totally confident that their information which is held by firms with whom they deal is secure.

A guide for businesses which spells out the risks, gives advice on securing business information and how to deal with a security breach, is now available: http://www.stop-idfraud.co.uk .

The research shows that two thirds of firms have no real procedure for dealing with documents with confidential details and that a third of employees just dispose of those documents by putting them in the waste paper bin.

44% of UK staff does not shred documents which contain confidential details. Only 54% check financial statements, only 45% look for missing mail and 31% do not report lost sensitive information.

62% of companies fear financial loss from fraud and 43% are concerned about harm to their reputation. Over 70% of UK staff thinks their companies should take more care in the handling of documents containing confidential information.

The Government says that the UK economy loses £1.2 billion a year due to identity fraud. 60,000 firms have been affected this year, a 36% increase over the same period last year.

A business which is exposed to fraud may have a difficult time surviving. The disruption to normal business practices caused can be difficult at best. The attitude that it happens to someone else is common but not realistic.

We check the identity of firms listing in our Business Directory for our UK Local Search facility carefully by an opt–in and confirmation system. We send UK businesses qualified business leads with no cost to them, our directory being funded by Google Adsense advertising.

Monte Huebsch, CEO

UK online credit card fraud levels are lower but more sophisticated techniques are now being employed by cyber criminals to access online bank accounts.

Financial Fraud Action UK reports that credit card fraud was reduced to a loss of £232 million in the 6 month period this year, a drop of 23% from the same period a year ago.

Fraud losses on lost and stolen credit cards are down 6% to £25 million, the lowest figure since 1991.

The credit card companies have been very active in instituting a variety of online securities measures, which are having the desired effect.

The introduction of additional online security techniques, including the need to use a password when making an online purchase, has meant a reduction in fraud of 18% in internet, mail order and purchases via the telephone. Also, the use of a PIN in UK retail establishments has further reduced the fraud level.

However, online banking fraud increased by 55% in the first half of 2009. Losses from online banking fraud were £39 million in the first six months of this year.

Phishing is a major contributor to the banking fraud increase, with 26,000 of those actions, a 26% increase, over the six months.

This technique targets consumers rather than banks, which have much more secure procedures. The quality of a false email, asking for bank details to be updated, is very convincing, with an identical look to a genuine communication.

Small UK businesses are especially vulnerable since the volume of the email they receive is increasing on an ongoing basis and most business financial transactions are done online.

While banks may eventually compensate the companies for losses, the disruption involved in suffering a substantial cash flow reduction is very difficult for small firms to deal with.

Caution and a healthy level of scepticism are needed.

We assist small UK businesses by giving them prospects from our Local Search facility in our UK Business Directory with zero cost for them. There are 1.6 million businesses listed in our directory and the vast majority are small firms.

Monte Huebsch, CEO

The UK Post Office now offers business insurance to 95% of small UK businesses.

The UK Post office now can provide business insurance for most types of small UK businesses. 80% of small firms who have a major loss due to fire, accident, or some other event, fail within 18 months because they were not sufficiently insured. 

The Post Office is offering attractive premium rates and covers fire, theft, public liability, professional indemnity, equipment, and interruption to trading due to an accident or breakdown.

The Post Office has staff available to advise what insurance is required by law what additional cover should be considered. 

Small businesses have cut back on many overheads during the economic downturn and the use of professional services and outlays such as insurance have been reduced.

This is a case of where the most vulnerable are also the most exposed and least able to cope with a disastrous event. 

Since many small businesses use the Post Office regularly for business banking, the service should help to ensure that the insurance which is essential to cover the business risks is in force. 

We help UK small businesses by providing qualified prospects to them, without any cost, from our UK Local Search facility in our Business Directory. There are 1.6 million businesses listed and most of them are small businesses. 

Monte Huebsch, CEO

UK Internet advertising outlay now exceeds the amount spent on TV advertising.

The internet advertising expenditure in Denmark exceeded that spent on TV six months ago, and now the UK has reached a similar position. 

A study by the Internet Advertising Bureau reports that advertisers in the UK spent £1.75 billion in the half year to 30 June, an increase of 4.6% on the same period last year. This has grown from only £19.4 million in 1998, when it was first measured. 

Internet advertising is now 23.5% of the total of advertising expenditure in the UK and TV ads make up 21.9%. The TV advertising outlay was reduced by 17% in this period to £1.6 billion. 

Online search advertising made up 60%, an amount of £1.05 billion, of the £1.75 billion amount spent online. This was increase of 6.8% over the previous year’s first 6 months. 

The amount spent on Internet classified ads increased by 10.6% to £385 million, 22% of the total of online advertising. However, internet display ads outlay was reduced by 5.2% to £316.5 million, which was 18% of the total internet ad spend. The fall in online display advertising was the response of larger companies to the recession. 

Video advertising on the net, which is a new field, grew 300% to £12 million. 

The Internet Advertising Bureau suggests that there is still substantial growth to come in online advertising, with a prediction that it will reach 30% of all advertising, a figure of £4 - £5 billion. 

This trend of advertisers following consumers online is dramatic. The only query on how this will continue is whether social network sites, where the user numbers are growing very fast, will be able to successfully incorporate effective advertising without losing their members. 

Online advertising is growing quickly because of the ability to track results and accurately determine the cost of acquiring new business. 

We make this service available free to the 1.6 businesses listed in our Business Directory via our Local Search facility. We provide them with qualified prospects, with no cost to them. 

Monte Huebsch, CEO.

UK traditional media companies intend to charge for their online content and Social Networking sites are also looking to monetise their business models.

A UK survey by the Association of Online Publishers says that 7 in 10 newspapers, magazines and TV firms intend to charge for access to their online content within the next year.

A third of those who intend to charge favour a pay for use model, with a only small fee being involved.

The firms surveyed said they would charge for special reports, applications that are downloaded, archived material, and content designed for mobile devices.

86% said that they either do, or will provide, sites accessible to mobiles within the next year.

Social networking sites are the current high growth area in terms of members, with Facebook, established three years ago, now exceeding 300 million members and growing at 5 million members a week. Facebook announced that they are about to become profitable, based on the advertising revenue they generate. Facebook has a current valuation estimate of $5 billion.

Twitter is another site with rapid growth, with 45 million users currently. It has raised $100 million in venture capital but as yet has no income stream. The have altered their terms and conditions recently to allow advertising.

MySpace was the early star, having acquired 50 million users in just two years, but it is now falling out of fashion, having reduced its workforce by 30%, and it is losing advertising revenue at a rate of 15% each year.

Linkedin is a site for professionals which is profitable and currently has 43 million members. 81% are university graduates with an average age of 41 and an average income of £75,000.

While traditional media firms will try to make charging for content acceptable, there is doubt as to how well that will work. Specialist titles such as The Wall Street Journal have a successful subscription model, but generally people are averse to paying for content they have been used to receiving free.

We take the Google view that information should be free, supported by advertising. Our UK Local Search facility in our Business Directory sends prospects to the 1.6 million businesses listed, with no cost to them.

Monte Huebsch, CEO