Despite the phenomenal growth of social networking sites such as MySpace and Facebook, it appears that few entrepreneurs are using the web to meet new business contacts.
According to a survey by Barclays Local Business, whereas sites like MySpace grew by around 89% last year, the internet has yet to prove itself as a meaningful way to meet new customers and suppliers.
In fact, although business networking sites such as Viadeo, BT Tradespace and Connected Capital are beginning to gain momentum, the research found that just 8% of small business owners surveyed are currently using the internet to network.
The research found that the majority of small business owners still prefer the personal touch when it comes to doing business, with 61% citing organised shows and networking events as the best way to meet business contacts.
However, the survey also found that more ‘traditional’ breeding grounds for doing deals and making new business contacts, such as the pub and other social hotspots, no longer fit in with the typical entrepreneur’s professional work ethic these days.
John Davis, marketing director for Barclays Local Business, commented:
“Entrepreneurial spirit is at an all time high in the UK. But the new world of the internet is still to catch on, especially for networking, as entrepreneurs would rather go to a formal networking event rather than make contact with people online.
“Perhaps it is down to the fact that many small businesses are sole traders and organised events allow you to meet others, and discuss issues face to face, something a chat room will never be able to do.”
The survey also found that the top five contacts most valued by small business owners are their spouse or partner; business partner; accountant; parent and finally, bank manager.
© Crimson Business Ltd. 2007
