UK Entrepreneurs Are Getting Connected

Survey Reveals Increasing Take Up Of E-Commerce

British entrepreneurs are seizing the opportunities created by the e-commerce revolution, according to new figures released today by business advisers Ernst & Young.

The findings, from a MORI survey in support of Ernst & Young's Entrepreneur of the Year award programme, reveal that 38% of UK entrepreneurs are already engaged in e-commerce - a staggering figure given that only two years ago e-commerce in Britain scarcely existed.

Of the 60% yet to embrace the connected economy, over half plan to introduce e-commerce strategies over the next two years. And some sectors are more advanced than others; of financial services and high technology companies, more than 79% say they will be buying and selling on-line within three years.

David Wilkinson, Ernst & Young's National Head of Entrepreneurial Services, explains: "Entrepreneurs are seizing the opportunities today's technology offers to reach new markets and get closer to their customers and suppliers. In America, for instance, on-line shopping grew by 200% in the last six months of 1998 and overall sales for the year are predicted to be between $10-13 billion (1636-8 billion). The UK is behind the US in this area, but we're developing fast."

Marketing is the area where e-commerce is having most impact, but over the next three years, respondents see this shifting towards sales with supply chain management becoming increasingly important. As the benefits become more widely realised, e-commerce will change existing ways of doing business and customers' expectations of companies.

David Wilkinson continues: "By taking the risks entailed in adopting new business practices and ways of working, entrepreneurs are driving commerce forward and altering the way society does business. Their inspiration will motivate the next generation of entrepreneurs to push the boundaries further."

Technical details

• The nationwide self-completion survey was carried out by MORI on behalf of Ernst & Young between 9 and 21 January 1999.
• Responses were received from over 857 entrepreneurs in businesses with turnovers ranging from less than 1635m to in excess of 163500m and employing from less than 20 up to 500 plus.
• Based on the replies, the sample has been estimated to employ 175,220 people. Total turnover was almost 16345 billion.
• Further information on Entrepreneur Of The Year is available from Jon Tracey at Ernst & Young on 0171 931 3264.