27/08/2010
Small businesses operating online received a welcome boost today, as it was revealed that the online business sector has seen rapid growth over the past year.
Research by online auction site eBay, found that the number of small business with an annual turnover of 1million doubled over the last year, thrusting the UK's e-commerce industry to the forefront. The study found that 127 small enterprises are expected to reach a turnover of 1million in 2010, compared to 66 businesses that achieved this figure in 2009.
Similar research from the IMRG - an industry body for online retailing - also saw a rise in online business profit, reporting that consumers spent 5bn on online shopping in July alone, representing an 18 per cent rise on the same period last year.
Managing director of IMRG, David Smith, spoke to growingbusiness about the positive increase, saying: ''The evidence mounts that high street retailers will need to invest more in their online business and put it at the heart of their strategy. Online retailers, on the other hand, will need to continue to innovate as they strive to close the growth gap.''
To free up finance for market research, e-commerce development and innovation, online retailers can utilise the services of invoice discounting and factoring. Such finance options can help a small business drive forwards, making the most of the uplifted online market.
Speaking to The Press Association, Jody Ford, SME director at eBay, commented on her company's research saying: ''It is tremendous to see this surge in the number of thriving small to medium sized firms and start ups at a time when the rest of the economy has been struggling.''
Sarah Howard