Over half of UK consumers (53 per cent) would walk away from any business that does not have a website, according to research commissioned by 1&1 Internet, one of Europe's largest web hosting and domain name registration companies.
The survey also found that one in five small businesses still do not recognise the importance consumers place upon a web presence.
There was also huge confusion within businesses over the cost and time needed to create a website.
The research identified that in addition to the 53 per cent of consumers who would walk away from a business with no web presence, even more of Britain's 3.7 million SMEs could be losing sales if they have a poor quality website.
The results found that 85 per cent of consumers have more doubts or reservations buying from a business with a poor quality website. A further survey worryingly reveals that despite these overwhelming figures, one in five of SMEs do not recognise the importance the public places upon a web presence, and a further one in five businesses do not believe that a substandard website could have any negative effect on sales.
Andreas Gauger, chief executive of 1&1 Internet, said: "It is clear that consumers nowadays expect every business to have a professional web presence and are turnedoff by second-rate websites, yet clearly many SMEs are confused over the importance of the issue.
"If businesses want to maximise sales, they must be online with a website that gives the right impression."
The research also found there to be widespread confusion within the UK small business community over the costs and time involved in creating a website.
According to 1&1, it takes less then 30 minutes to create a website. However, over two thirds of SMEs (67 per cent) believe it would take ten times longer, while nearly two thirds (63 per cent) over-estimated the costs by an astounding 400 per cent.
In addition, 73 per cent of small businesses admitted they would not feel confident tackling a build-your-own, DIY style website package. The findings suggest that misconceptions could be leading many UK businesses to miss out unnecessarily on a critical internet presence.
Andreas Gauger added: "It is concerning to see that in 2006 so many UK businesses are misinformed about the minimal cost and time needed to build a simple website.
"Any business owner can easily set up a website themselves for under £40 a year and within 30 minutes - it may prove to be the most worthwhile half an hour they spend this year."
