Many small to medium enterprises (SMEs) are missing out on sales because they are reluctant to move forward with the internet, a new report has suggested.

BT Tradespace found that while 92 per cent of small businesses claimed to be aware of blogging, only 18 per cent admit to using it for business purposes.

The research also found that 69 per cent refuse to believe that upgrading their businesses to the internet could boost their sales.

But, head of BT Tradespace Mick Hegarty commented: "Small companies can benefit greatly by exploiting the marketing and sales opportunities afforded by the internet."

He claimed that it is now more important than ever for businesses to be using the internet, given the fact that credit-crunched consumers are turning to the web to shop online.

Moreover, an online presence makes companies look more professional and credible, creating "a world of opportunities" to engage with customers, Mr Hegarty added.

Evidence of this is recent news that a small pet supply firm in Gateshead reported a 120 per cent growth in sales after going online and adopting search engine optimisation techniques.

Director of the firm Pet Points Simon Bruce told the Northern Echo that SEO managed to boost traffic to the website.