Small Firms Failing To Enter Communications Revolution

The Institute for Public Policy Research study, ‘Small Firms On-Line’, has found that the slow take-up of advanced telecommunications and services by small firms is a result of the supply industries, such as Mercury and BT, failing to target their needs properly.

Gillian Lauder and Andrea Westall, the authors of the report also argue that government policy-making in general fails to take account of the special needs of small firms and therefore only leads to all-encompassing initiatives.

Where small firms are using new communications technologies such as e-mail and the Internet they are seeing an improvement in their internal processes, rather than their external networking with outside bodies, like customers and suppliers.

The report concludes that;

• Small firms should be given more influence over government policy. In particular they should have a greater role in telecommunications regulation.

• Partnerships between business, local authorities, chambers of commerce and other groups should be created to set up regional electronic trading networks. This, it is believed, will increase regional trade and harness resources to market for export.

• Electronic groups of suppliers and small firms should be developed to work towards improving applications of new technology for small firms.

• Higher Education institutions should be encouraged to support electronic networking between businesses.

Contact: Andrea Westall at IPPR 0171 470 6100