A large proportion of small businesses are not taking advantage of e-commerce despite the benefits online trading has to offer. The Federation of Small Businesses (FSB) has pointed out that just 18 per cent of SMEs are trading via the internet, even though e-commerce allows smaller firms the opportunity to compete in much bigger markets without incurring heavy costs. Of those smaller firms that are selling online, just 1 per cent conduct all their business through their websites. Fear of credit card fraud is a major deterrent to many firms, with 19 per cent citing cyber crime as a reason for not trading electronically. Yet the figures also reveal that only 6 per cent of businesses have ever experienced online credit fraud. Responding to the recent report on e-crime from the House of Lords Science and Technology Committee, the FSB said that it supported efforts to set up a national e-crime co-ordination unit. This would make it easier for victims of online criminal activity to report incidents to the police. The FSB also wants legislation that means banks should take some responsibility for losses that occur as a result of online fraud. Many small businesses are caught by charge-backs from card fraud months after they believed the transaction had been successfully processed, the FSB argued. David Croucher-Jones, the FSB’s home affairs chairman, said: “The extent to which the UK’s SME sector is engaged in e-commerce is an issue of considerable economic significance. We applaud the Lords Committee for having highlighted and recommended proposals that are essential to internet trade moving forward – but recommending and doing are two different things.” Mr Croucher-Jones added: “E-crime needs to be given the same status as crime that is committed against a bricks and mortar business. Only when this is accomplished, by implementing the Lords recommendations, can more small businesses benefit from having a stronger online presence. Customers will also benefit from the increased choice and convenience that online security can bring.” Date:15 August 2007
Content by: Made Simple Group
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