A new report to be published soon claims that small businesses are losing millions of pounds in potential sales because they are wary of using the internet to sell products or services.

Six out of ten do not sell online, though they use the internet to buy goods, according to a study by BT to be published this week.

The Voice of Small Business report, which surveyed more than 400 firms employing up to 50 people, found that they were failing to take advantage of consumer demand for online shopping.

Despite four out of five businesses having a website, nearly two thirds used it to promote their wares rather than sell them, while 67 per cent did not believe they would find customers online.

According to BT Tradespace, the online business community that carried out the research, £20billion was spent online last year. This meant that small businesses were missing out on millions of pounds in potential sales every year.

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BT Tradespace