Web 2.0 not used for business networking

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Facebook and MySpace are not being widely used by small businesses as promotional tools, according to a new survey.

Despite such social networking sites experiencing 89 per cent growth last year, just eight per cent of small business owners use them to meet new customers and suppliers, according to a survey of 520 small businesses by Barclays Local Business.

"Perhaps it is down to the fact that many small businesses are sole traders and organised events allow you to meet others, and discuss issues face to face, something a chat room will never be able to do," said John Davis, marketing director for Barclays Local Business in a statement.

Some 61 per cent of those surveyed said they still use trade shows and other organised events to network.

"The new world of the internet is still to catch on, especially for networking, as entrepreneurs would rather go to a formal networking event rather than make contact with people online," Davis said.

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