Australian SMEs are slow to harness the benefits of the internet, but insurance firms are leading the way in turning things around.

A survey of 1000 Australian businesses by small business services provider MYOB says SMEs are lagging behind Europe and the US, despite evidence that businesses using the internet perform better.

Only 35% of the Australian SMEs had a website; 18% used social networks like Facebook, YouTube or Twitter; and 13% used online newsletters or blogs.

But one bright spot was the insurance industry, which was most likely to be online, with 51% of businesses having with a website.

MYOB GM Julian Smith says the key lesson from the research is that businesses need to find the time and the means to build an online presence.

The study found businesses with a website were 5% more likely to report having more work than normal and were 9% more likely to predict higher revenue in the next 12 months.

“Businesses that make the time to get online make more money and are more confident,” Mr Smith said.

With the introduction of the national broadband network, smaller businesses are well positioned to develop an online presence, he says.

“The internet is a huge opportunity for Australian businesses.”