Nearly half of small businesses in the UK do not have a dedicated company web site, according to research.

Forty per cent of the 300 firms with 50 or fewer employees surveyed by BT Business have limited web presence, though 52 per cent use the internet as their primary marketing and customer communication channel.

And more than a fifth of small businesses have no online footprint at all.

Nearly three-quarters of respondents say the internet will play an important role in business over the next five years, and 63 per cent believe it allows them to compete with bigger players and in different markets.

More than half of respondents believe the business world is less personal as a result of technology and 15 per cent of small businesses never trust the companies found through the internet.

But online business referrals are increasingly important in generating revenue. Fifty two per cent of companies see a up to half of their new business coming through recommendations and 34 per cent are keen to be part of a network with similar businesses in their area.

Relationships and networking are essential elements of running a successful company, says BT Business head of market development Ivan Croxford.

‘We are communicating and sharing thoughts a lot more, using e-mail, blogs and social networking sites in both our business and personal lives,’ said Croxford.

‘That is set to grow as small businesses begin to see the real benefits of the latest technology, which give them the ability to interact more easily and meaningfully with customers, partners and suppliers,’ he said.