New research from the communications watchdog, Ofcom, highlights that only groceries and personal care products are more important than access to the Internet.

Peter Phillips, Ofcom’s partner for strategy and market development, said “Despite the recession, people are spending more time using mobile phones and accessing the Internet”.

Currently, 68 percent of the UK have broadband access to the Internet compared with 58 percent this time last year. Consumers spent an average of 25 minutes a day using the internet in 2008, compared to just nine minutes in 2003. But the average cost of internet use dropped from £11.37 in 2007 to £10.71 in 2008.

Ofcom said costs are being driven down by increased competition and more consumers opting for “bundle deals” which offer telephone, broadband and TV subscription. The report showed 46pc of consumers buy two or more services from one supplier, up from 39pc a year earlier.

Asked what expenses would be cut in the face of recession, 47 percent of consumers said dinners out, 41 percent said going on holiday and 25 percent buying new clothes.

But only 10 percent said they would cut back on broadband.

Mr Phillips said the biggest “phenomenon” was the staggering growth of mobile broadband, with 139,000 new connections in May alone. More than one in 10 households has a mobile broadband connection, less than a year since it became widely available.

The rise of the internet, particularly music streaming like Spotify, appears to be killing radio, which has seen a 21pc drop in listeners under 16 over the past five years.

This news will be welcomed by businesses and entrepreneurs who have invested time and money in educating their staff how to use the web more effectively.

Almost two thirds of the 410 businesses polled from eBay’s top 2,000 sellers list said they were confident about the future and more than three quarters planned to expand their business this year.

Mark Lewis, eBay’s UK manager, said this confidence was based on their robust sales performance over the past year, with the average from his top 1,000 sellers hitting 29pc growth in the last quarter of 2008, up from 23pc in the same period of 2007.

Mr Lewis said these online trading businesses were still “bucking the trend” of stagnant retail sales on the high street. Some 54pc expected rising sales, while 30pc expected static sales this year.

These expectations were supported by the monthly IMRG Capgemini online retail sales index, published last week, which showed that year- on-year sales grew 13pc in February.

Mr Lewis said: “They are growing at a rate that is bucking the trend. Not only are they growing faster than retailers in general but they are accelerating.”

According to the survey, which covered businesses that trade online via eBay, other platforms like Amazon and their own websites, most online traders still focus on the UK market.

Almost 90pc of the sales by the top 1,000 sellers on eBay were conducted with UK customers. European customers represented 9.4pc of total sales, with other countries representing less than 1pc.

Mr Lewis said smaller traders still found it difficult to negotiate barriers to trade, like different consumer protection laws, operated by different countries, even across the EU.

According to comScore, the top growing online product category for the season was Sport & Fitness, which grew 18 percent versus year ago. The category continues to benefit from consumers’ focus on health and fitness and consumers feeling more comfortable purchasing higher-priced fitness equipment, such as treadmills and elliptical machines, online. The second fastest-growing category was Video Games, Consoles & Accessories, which grew 14 percent on continued demand for popular consoles, such as the Nintendo Wii, Microsoft Xbox 360 and PlayStation 3. Apparel & Accessories, the only other product category with positive online growth, generated higher sales as a result of retailers’ aggressive discounting and promotions, and helped by unfavorable weather across much of the country.

Sir David and Sir Patrick Barclay have bought the much-loved chain along with Ladybird, the childrens brand it owned, for a price of “more than £1″, according to Mark Newton Jones, CEO of the Shop Direct group, the Barclays’ shell company used for the acquisition.

However, it is unlikely any staff who were based at the Weston-super-Mare store will retain their jobs, as only a fraction of the 30,000 workforce are expected to be kept on.

The High Street store closed and 65 people were laid off on December 27 after company bosses announced debts of £300million.

The twins, who also own the Daily Telegraph, will add the Woolworths brand aloongside Great Universal and Marshall Ward in their Shop Direct group.

The survey found that 81.6 percent of workers are interested in starting a business, 7.6 percent of whom are determined to do so.

Of these potential entrepreneurs, 15.2 percent said they are thinking of making a change because their employment situation is not good. However, the two reasons the respondents mentioned most frequently for wanting to start a business were a desire to live the life they want and to realize their dreams.

The results showed that older workers, especially those in their 50s, are most likely to turn to entrepreneurship because of unemployment, with 26.6 percent of workers in this age group saying that losing their jobs was what gave them the urge to start a business.

Some 23.3 percent of respondents interested in entrepreneurship plan to move in that direction within one year, 22.5 percent intend to do so in one to two years, 19.9 percent in two to three years, and 34.4 percent in three years or more, according to the survey.

The survey also revealed that older workers tend to be more proactive in trying to put the idea into practice.

More than 53 percent of respondents in their 40s and 40 percent of those in their 50s are planning to start a business within one year, compared to 24.6 percent of those in their 30s and 15.1 percent of those in their 20s.

On average, the potential entrepreneurs would require £11,500 in startup funds, the survey found.

As to the kinds of business they what to run, 39.4 percent expressed interest in coffee shops, restaurants or snack bars, and 39.1 percent indicated a preference for operating an online business.

Nearly 40 percent of the potential entrepreneurs are optimistic that they can make a profit in six to 12 months after start-up, and 23.7 percent expect a gain within six months.

Meanwhile, among the respondents who have no desire to go into business, 61.5 percent think starting a venture in times of economic recession is a risky undertaking.

Other reasons mentioned by this group of respondents included a lack of capital, lack of personal qualities to run a business, and lack of any special expertise.

The survey was conducted Jan. 19-23 among 7,632 members of the job bank. It had a margin of error of 1.12 percent.

Apply for a Bursary | Press Release | Quick Info | Prospectus

The OBI bursary scheme gives first refusal to its donors on investment opportunities in its members businesses. This means the next generation of Internet entrepreneurs can be guided to their success at little or no cost and then have their business capitalised for expansion by their sponsor.  With one job for every seven applicants in most markets, Online Business Initiative (OBI), provides real hope and opportunity in a world of employment despair. Tim Brocklehurst, OBI’s founder said “With funding like this, applicants stand a real chance of reaching their dream while being trained in all the skills needed to fulfil their online business aspirations.”

The news of these bursaries will please Lord Carter, who in his speach at the Westminster Business Forum last week called for a “material step change in how we approach digital education, skills and so-called media and digital literacy.”

With an aim to get people earning from their own Internet businesses within 3 months, OBI has brought together the UK’s leading Internet experts to provide  practical “Action Learning” style training.

Participants are divided into beginner, intermediate and advanced classes, and then work in teams to share skills such as copywriting, co-ordination, design, programming and marketing. OBI’s aim is to guide them step-by-step towards their own web business. The teamwork means no technical experience is necessary, although it can help.

Nicola Cairncross of The Money Gym, and a former student of OBI, said: “I found it a challenge initially to get to grips with the process as I’m not good at following sequential instructions. But I could clearly see the awesome ability to encompass and automate so many elements of internet marketing under one roof, so I was determined to crack it and use it to grow my existing business.”

“I have never been more convinced that one product offers a genuinely one-stop-shop answer to both solo-preneurs wanting to grow their business AND aspiring Internet marketers.”

Of those who join OBI, Brocklehurst explained, “Some come with an idea for a new business, others with an existing company they want to take online. The remainder, who make up the majority, don’t have a clue what their business will be, so we give them a broad choice of ready-made products and websites, like a turnkey system, to get the ball rolling.”

Members learn a wide array of skills from Search Engine Optimization and pay-per-click advertising to web page design, e-commerce methods and the online marketing funnel.

With the tiny start up costs required for a web business, OBI’s bursary scheme will effectively give succssful applicants an income for nothing.

Bursary applicants will need to show they are prepared to learn and apply themselves to the task. They should also be accustomed to working on a computer and show a flair in using the Internet. Previous experience in an Internet business is not required.

Apply for a Bursary

Such an admission that investment is called for, will be encouraging news to the increasing number of Internet entrepreneurs who are unable to afford the cost of training in the skill of earning an income off the Internet.

Speaking at the Westminster Media Forum, the Minister for communications, technology and broadcasting also said that more should be done to educate the 40% of people who could get broadband but choose not to take it.

He spoke at length about the benefits of having information delivered digitally, and cited possible avenues for refinement and development in the governments own sprawling web presence.

The advertising industry, he said, is forecast to fall between 6 and 12 percent this year which equates to somewhere between £1bn and £2bn.  Of all the advertising media, the only one set to grow in 2009 is Internet advertising.

Premium Pearl anticipates the return of 30-40 percent of its customers during the upcoming holiday season, and sales are expected to match that of last year.

The retailer offers quality pearl jewelry at an affordable range of prices, compared to Macy’s or Tiffany’s. Most customers are drawn to the site through various online advertising campaigns at Google, Yahoo!, and MSN.

Company founder and manufacturing director, Yan Berry, is aware of the challenge that selling a luxury product such as a pearl jewelry online can be, and makes every effort to ensure quality manufacturing. The challenge that online retailers face include consumers being used to touching and feeling the goods that they plan to buy for someone they care about. They are also more leery about getting a good value and whether or not the online store is trusting.

Yan comments, “When I put the order together, I am treating it like my own order, I am thinking the extra effort I put in making the jewelry-whether it is $30 or $5,000 order, will make someone so happy, and it is very rewarding.”

Co-owner of Premium Pearl, and graduate of GIA Pearl, John Berry, personally consults customers on the phone, and says that the experience of talking to customers is valuable, and it helps him to improve services and make wiser business decisions. Yan, who also believes that listening to customers is key, states, “Their feedback is so insightful, it helps to improve our service, our Web site, and merchandising.”

Feedback forms are sent out via email to customers several times throughout the year, so that they can offer input regarding quality, price, delivery, and service. The company believes that seeing five-star feedback is great, but they are also interested in those that aren’t. “We always carefully learn from the problems pointed by customers, and try our best to fix it,” Yan said.

This year, while media report business closing or employee laid off every so often, Premium Pearl is making good sales from not only new customers, but more importantly, from many old customers. According to Yan, “Old customers really know our quality and services, they often came back for very big purchases.”

Yan expressed that having a web site with useful resources and easy navigation boosts buyer confidence. The Web site contains detailed pearl guide that help customers make good buying decisions. Quality pictures also play a role in the company’s increased buyer assurance.

With Christmas holiday coming up, Premium Pearl predicts 30-40 percent of old customers will end up coming back to make purchases again this year. They also predict that Christmas sales will be similar to last year.

About Premium Pearl:
Premium Pearl (Web site www.PremiumPearl.com) is an online fine pearl jewelry retailer. Located in San Francisco, the company designs and manufactures pearl jewelry with its high standards of quality and style. It is also a leader in trendsetting pearls. Everyone from musical sensation Fergie to actress Tamara Braun has been spotted wearing the company’s unique designs.

Even though online shoppers plan to spend less in stores this holiday season, planned spending online is up slightly, compared to the same quarter last year. Online households planning to spend more than $500 in stores declined to 16 percent from 21 percent last year. Those planning to spend more than $500 online rose to 5 percent from 4 percent last season.

Those planning to spend between $100 and $499 in stores declined to 57 percent from 61 percent last year, while those planning to spend that amount online edged up to 36 percent from 35 percent last year.

Online households planning to spend less than $100 in stores increased to 22 percent from 16 percent last year. Those planning to spend that amount online rose to 32 percent from 29 percent.

“Despite slowing retail sales in many channels this holiday season, online shopping is likely to be one of the few bright spots this holiday season,” reports Mary Brett Whitfield, Director of the Retail Forward Intelligence System(TM) of TNS Retail Forward. Online sales across retail channels are forecast to grow 9 percent this holiday season, compared with a total retail sales forecast of just 1.5 percent growth this year in the key holiday shopping retail sectors. TNS Retail Forward forecasts online sales to reach $42.5 billion in the fourth quarter, up $3.5 billion from last year. “The convenience of shopping online still resonates with many holiday shoppers, even in a slow economy,” adds Whitfield.

The group said its findings showed the ever-increasing importance of the web to business growth. In a separate finding, around 70 per cent of its 8,700 members have there own website, up a quarter on the previous survey in 2006.

Dr Gary Packham at the University of Glamorgan, where the report was compiled, said: “These figures show the very clear link between new technologies and business growth.

“If the country’’s 4.7m small businesses are to take advantage of the internet to grow their businesses and the economy, they will need good quality services to be in place, as well as good information and education about how to use them.”

FSB national policy chairman John Walker added: “The number of small businesses who have their own website has grown over the past two years, which indicates that small firms are becoming increasingly internet-savvy.

“Despite the onset of an economic downturn, all small firms should look to the internet to maximise their sales and increase efficiency.”