The number of small businesses trading online with a turnover of £1m has doubled over the last year, e-commerce site eBay has revealed.
According to eBay, small businesses play a significant role in helping to drive the UK e-commerce industry. A total of 127 companies are projected to reach a turnover of at least £1m in 2010, compared to 66 businesses last year.
eBay’s director for small and medium-sized enterprises, Jody Ford, said: “It is tremendous to see this surge in the number of thriving online small and medium sized enterprises and start-ups at a time when the rest of the economy has been struggling.”
She added: “The success of these million-pound businesses should encourage all entrepreneurs, from those with a long-standing business plan to graduates or school leavers with a great idea.”
The figures have shown that 25,000 people launched a business on eBay during the recession. Twenty five of those are projected to achieve a rise in revenue of 100% or more this year, while 14 will rise to over 200%.
Figures from IMRG suggest that e-commerce continues to grow, as shoppers spent £5bn on the internet in July, up 18% since the same month in 2009. This is the highest yearly growth in three years.
David Smith, Managing Director of IMRG, said: “With over half of the UK population online at least once a day it is no surprise that online sales continue to grow impressively year on year. The evidence mounts that high street retailers will need to invest more in their online business and put it at the heart of their retail strategy. Online retailers, on the other hand, will need to continue to innovate as they strive to close the growth gap.”