There is a clear divide between small and large businesses in UK adoption of IT, according to a new report by the Office of National Statistics.

For example, 39 per cent of large businesses (with 1,000 or more employees) sold over the internet in 2005. Yet among smaller businesses (10-49 employees) only 13 per cent did so.

But recently the fastest growth in IT use has been among smaller firms, as they catch up with the progress made by larger companies in the
1990s, though a gap remains.

Some 98 per cent of companies with 1,000 or more employees had a
dedicated web site in 2005, up from 95 per cent in 2002. Over the same
period, the proportion among companies with 10-49 employees rose from 54
per cent to 66 per cent.

Broadband use, held back until the late 1990s, has surged in recent years. The proportion of business with a broadband internet connection rose by a quarter between 2004 and 2005, to 75 per cent.

Between 2002 and 2005, the proportion of non-financial businesses with 10
or more employees selling goods and services over the internet rose from seven
per cent to 15 per cent, while the proportion purchasing over the internet
rose from 18 per cent to 56 per cent.

Altogether, sales over the internet rose from £66bn in 2004 to
£103bn in 2005.