Unreliable business broadband costs firms money

Small businesses with slow and unreliable connections to the internet are losing money as a result, according to new research by Citizens Advice.

A survey of 2,000 small companies by the organisation found that more than half of firms would lose money if they were not able to get online.

The report also revealed that three in 10 of the respondents are worried about unreliable broadband services, while a third have experienced problems with their broadband supply within the last 12 months.

Chief executive of Citizens Advice Gillian Guy stated that poor broadband services are continuing to cost small firms business.

She explained: "Many are using the internet to communicate with customers, place orders for stock and shop around for the best priced supplies. A reliable broadband service is essential for firms to be able to operate."

An increasing reliance on digital technology is only going to make business broadband connections more vital to companies and those that cannot rely on their suppliers are at risk of being left behind by their rivals.

Ms Guy added: "While access to finance continues to be a worry for some firms, it is the cost of running equipment and lighting offices that is a more common concern as firms fear prices are only going to go up."

While the government has extended its business broadband voucher scheme to allow more companies to take advantage of the offer, organisations based in Scotland are increasingly frustrated by the slow pace of progress in bringing superfast technology to the country.

Margaret Lynch, chief executive of Citizens Advice Scotland, explained that many Scottish companies are particularly vulnerable to broadband issues.

She said: "Around 50,000 small enterprises are based in rural Scotland, who are even more likely to experience problems with broadband connection.

"Any problems that these enterprises face can threaten their viability and can mean a poorer service for local consumers. In rural areas, this can have a bigger impact than in larger towns where workers can find other employment and consumers can use other businesses."

Businesses looking to move services into the cloud should evaluate the performance of their existing network and consider setting up a leased line or MPLS network.

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