Almost one in four small businesses have failed to update their website since it was launched, according to research carried out by internet marketing company Netflare.

The organisation discovered that 23% of companies have not altered their online offering since it went live, with the average age of such websites standing at four years.

Even more surprisingly, only 8% of small business sites have a transactional element despite the fact that a majority of those questioned said the aim of the site was to increase sales. The research added that 25% had no way of tracking how many sales were made as a result of people visiting their website.

"We were completely staggered by the tiny percentage of small business owners who were actively using their websites to generate sales," said Jon Beal, managing director of Netflare.

"Figures from the Office for National Statistics show that between 2005 and 2006, consumers spent £102 billion in online purchases in the UK alone.

"It is beyond comprehension that small business owners are ignoring one of the fastest growing sales opportunities there has ever been."

The survey also revealed that over a third (38%) of small businesses had no budget for regular website updates and of those that did the average was just £250 a year.

"It seems that once small business owners have a website, they don't really know what to do with it, so they ignore it," added Beal.

"The UK has the most active online population of any country in Europe with around 21m of us logging on every day. Some 72% of those are using the internet to make purchases of goods and services. The fact that small businesses are neglecting this huge and growing marketplace is astonishing."