Businesses are neglecting their websites in the downturn, new research suggests.

A new survey shows that nearly 50% of companies are finding competing online to be 'challenging' in the current economic climate.

Some 33% of businesses claim they are not updating their websites because they do not have enough time, even though some 69% of small business owners are aware aspects of their websites require attention.

Around 32% of businesses say they fail to make changes in favour of focusing on other areas of their business.

Steve Holford, CMO of web host Fasthosts Internet, the company behind the survey, said: “In challenging economic conditions, business owners are more stretched for time and resources than ever.  However, it is important to remember that often the simplest improvements to a website can make a noticeable impact on sales conversion rates. Even a modest business website must receive regular attention to fulfil its potential.”

The research suggests 27% of small companies are unhappy with their website design, while 25% are concerned their website lacks sufficient means of customer communication, and another 20% are worried about their ecommerce functionality. A further 18% want to replace outdated images.

Just 10% plan to replace their entire website.  

The average business appraised its own website at 6 out of 10 for overall effectiveness.

© Crimson Business Ltd, 2009