Small businesses become online millionaires

It’s been a tough couple of years for SMEs. And the double whammy of tighter bank lending and a lacklustre customer demand shows no sign of immediate improvement.

But in other news online small businesses continue to thrive.

There’s no doubt that technology has shifting the playing field for SMEs. And now it seems that all the next batch of millionaires need is a computer and broadband connection.

According to eBay, the number of small businesses trading online hitting the million pound mark is projected to double this year.

“The success of these million-pound businesses should encourage all entrepreneurs, from those with a longstanding business plan to graduates or school leavers with a great idea – as it shows that if you have a good business model and understand the demands of your customers you can be an overnight success,” said Jody Ford, eBay’s director of But while SMEs .

Warren Blayds, owner of baby products site Online4baby, has seen his turnover double to £4m since 2007. “As the company grew in popularity and as more customers demanded immediate delivery, we shifted operations on to eBay. I have been able to hire more staff and expand the company,” he said

But while this is certainly good news for the sector, it’s worth remembering that this represents a tiny proportion of small ecommerce businesses (127 out of an estimated 25,000 people who launched through the site last year).

 

And as more businesses – both large and small – extend their online presence, SMEs will need to stay ahead of the game by continually developing their websites to create an engaging user experience. In an increasingly crowded market, complacency will not be an option.

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