SMALL businesses are failing to respond to the e-commerce revolution, a new survey has revealed.

More than 55 per cent admitted to not having a website, and fewer than a third of these webless firms plan to have one within the next year.

Malcolm Arber, of Bibby Financial services, which carried out the survey, said: "Gordon Brown set out to encourage one million small companies to go online by promising to write off against tax the full cost of investments in e-commerce and IT in the year of purchase.

"On the evidence of our survey, small businesses have hardly responded.

"They seem more worried by the e-commerce revolution than inspired by it and, where they have a website or intend to have one, they are more likely to see it simply in terms of advertising than as an opportunity to grow their business."