Building a better business may lie more in your broadband connection than your business acumen, a new study has suggested.
There is a proven link, researchers from Plymouth University have found, between super-fast broadband connections and the speed at which companies grow and create jobs.
The Plymouth-based researchers questioned 88 businesses in the neighbouring county of Cornwall whose broadband connection had been upgraded to British Telecom’s fibre optic service. These were compared to the same number of firms who remained on the old, slower broadband setup.
Of the fibre connected enterprises, more than 80 per cent reported they were now saving a significant amount of money. A third said they had generated more sales and more than a quarter reported the faster internet potential had directly contributed to creating new connections and international trade.
The university study was triggered by the formation of the Super-Fast Cornwall programme by the Cornwall Development Company and partly funded by the European Commission whose vice president, Neelie Kroes, claimed “This research has real international significance, because it starts to vindicate what we’ve said all along, that fibre optic broadband will energise our economy, generate jobs and save public money.”
The span of internet speeds, from the old BT service to its fibre optic technology, was also significant. Many of the upgraded businesses were enjoying at least 300Mbps, while others were struggling with just 500Kbps. According to Ofcom the average UK broadband speed is 6.2Mbps.
Nigel Ashcroft is director of the Super-Fast Cornwall strategy. “Having a reliable, consistent — and super-fast — broadband connection gives businesses a foundation on which to develop in various ways and just as crucially, to save costs,” he explained.
Enhanced broadband connections open the door to cloud computing, saving the cost of large in-office computers and software and allowing business to store data on remote servers. “It also allows meetings to take place remotely via video-conferencing systems, saving time and money, as well as lowering the company’s carbon footprint,” he said.
Flexible working is “another of the big wins” enjoyed by the growing number of companies switching to next-generation broadband. The introduction of virtual private networks shatters the traditional working conventions of rigid timetables and office meetings, giving staff at all levels the chance to work from anywhere, at anytime.
“It also allows many business tasks to be achieved much more quickly, releasing time which can better be spent refining processes and considering the next innovations,” added Ashcroft.
The West Country study only supports what others schemes across Britain are already exploiting. One of the latest is a £1.5m Cheshire initiative connecting and giving hi-tech advice to 900 small and medium-sized enterprises across the county. A joint venture between Peninsula Enterprise and Groundwork Cheshire, the project hopes to create at least 475 jobs in the next two years and deliver an economic boost of almost £19.5 million by helping businesses grow and improve their productivity.
Previous Post
Think Tank claims Charity Shops boost High Streets
