A recent study by Boston Consulting Group (BCG) suggests that the internet contributes 8.3% of the UK economy – a bigger share than for any other G20 major country.
The internet generated £121bn of income in 2010 – a value worth £2000 per person. This value exceeds equivalent figures for either the healthcare, education or construction sectors.
Furthermore, the UK carries out more online retail than any other major economy. 13.5% of all purchases in 2010 were carried out over the internet and according to BCG this figure could rise to 23% by 2016. BCG also project that by 2016 the total generated income through the internet will reach £221bn – This represents a rate of growth of 11% per year. Projected future growth rates for China and the US are 5.4% and 6.9% respectively.
The research goes on to explain that there is a clear indication of the UK public’s growing affection towards the internet with some 65% of people saying they would give up alcohol to maintain their broadband connection. This is clearly good news for both UK SMEs involved in the Internet sector and also investors into UK Internet based ventures. Hopefully this will make it easier for Internet based SMEs in the UK to attract the funding finance they need in future years.