In effect the small companies are falling back to the level of the larger companies three months ago. It may be that over the next quarter spending intentions decline further to bring them into line with revenues. There are still many dotcoms that are marching forward sticking to spending plans that were drawn up at the height of the Internet boom early last year. Internet revenues at many of the fastest growing e-tail sites have slumped. The experts we interviewed foresee the death of many more dotcoms that rely on advertising for their revenues, and they are convinced that the clicks and mortar business model is the least likely to fail.
Respondents increasingly see the UK as the best place in Europe to do e-business.
Last quarter we reported that there was dissatisfaction with the government's contribution to the Internet economy. This has intensified since the last time and is bad news at a time when the issues of last year, including the RIP bill and the IR35 National Insurance debate, are less high up the political agenda. Contact Copyright 2000 Online Research Agency. All rights reserved.