UK small businesses are 27 per cent less likely to use the Google search engine than UK consumers, according to research from online business directory Simply Business.

The survey, which investigated the search habits of 200 small business customers, found that 55 per cent use Google in comparison to 75 per cent of the consumer market.

Instead of relying on Google, small businesses spread their search across multiple information resources, including Yahoo (20 per cent), Yell (12 per cent), MSN (eight per cent) and Ask (five per cent), when researching and comparing business products and services.

Natural results were cited as preferential to sponsored links across a number of industries – including recruitment and manufacturing – while another 12 per cent admitted to not recognising the difference between natural and sponsored.

Separately, the Confederation of British Industry (CBI) published a report into how businesses use the Internet, at its annual conference at the end of November.

The survey – based on responses from 500 companies – found that 58 per cent predicted an increase in their online marketing spend, while 56 per cent said that the Internet has had a 'substantial' or 'revolutionary' impact on their industry.

However, over 70 per cent said their company still had a lot to learn about how to reach customers online and only 23 per cent feel they make better use of the Internet than their competitors.

Director-general of the CBI Richard Lambert urged businesses to “grasp the opportunities with both hands” and “make the Internet as central to their business as HR or finance”.

However, Guy Phillipson, chief executive of the Internet Advertising Bureau, suggests that it was “a bit late in the day” for the CBI to be encouraging Internet use among its members. “They should have started at least three years ago,” he comments.

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