Small businesses find that they have more confidence in the ability of their business to compete in the future after setting up an online presence, it has been suggested.

Companies with an internet website had more than double the confidence in how their business will perform, according to a survey conducted by UK business directory thebestof.

These small firms anticipated growth of 41 per cent over the coming year, while those who had not expanded to the web only thought they would see 20 per cent more business.

Chief executive of thebestof, Nigel Botterill, suggested that small businesses have "been quietly working in the background, using the web to steal market share from their bigger competitors".

He also called for businesses to not be afraid of the web as practices such as online marketing may appear daunting at first but are "a basic business skill and tool, just like financial management, which they can and must harness".

Firms may find that setting up a first online presence can be made much easier by letting web designers and online marketing experts create the site for them.