Many small business owners are yet to begin networking on the internet, instead opting for a more face-to-face approach to making new contacts, a new study had found.

The popularity of social networking sites like Facebook and MySpace has exploded in the last year, but a survey of nearly 600 local businesspeople in the UK by Barclays Local Business has found that these have largely failed to catch on as places for business-owners to network and make new contacts.

Only eight per cent of respondents to the survey said they used the internet to network for their business, with more than six-in-ten citing organised shows and events as their preferred place to build up their contact book.

"Over 100,000 new businesses are formed every quarter across the UK. But the new world of the internet is still to catch on … for networking," said John Davis, marketing director for 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.

"At Barclays, we believe that it's vital that businesses are encouraged to get together and are given the kind of forums or advice, whether in person or online, where they can spend their time most productively," Mr Davis added.

The survey also found that female business-owners valued networking more highly than their male counterparts, with 93 per cent of women classing it as important compared to just 86 per cent of men.

According to recent survey by Connect, the two biggest IT headaches for businesses were 'everyday hassles with IT' (37 per cent) and 'security concerns' (32 per cent)