The OFT commissioned the report to build their own understanding of the opportunities and challenges small and medium businesses face online.  It is now being used as a springboard to seek the views of businesses either looking to or already trading online.

The report described the routes to markets for SMEs that wish to trade online, and commented on the economics of them.

The overall findings of the report are positive.  Innovation, often by large players (e.g. eBay, Paypal, Amazon, Google, Twitter and Facebook) has led to significant decreases in cost barriers to small businesses setting up online.

However, small businesses can face difficulties online, for example:

• Small businesses that depend on particular providers are sensitive to system changes or loss of service,
• The levels of innovation and cost reductions that have taken place online have not always been matched in those aspects of the value chain that remain offline.  (E.g. delivery of goods bought online.)

Download the report, or view the press release from the OFT.

Learn more about the research. Learn more about Plum Consulting.