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Although many small and medium-sized business leaders in the UK feel their industry has become less personal with the advent of the internet age, more and more are using IT services to form networks and partnerships, a new survey has found.

A poll of 300 UK firms commissioned by BT Business found that 57 per cent of those questioned felt their industry had lost some of its personal edge in recent years, with 15 per cent admitting that they never trust companies they have met solely on the internet.

Many more, however, now appear comfortable with greater IT dependence, with 84 per cent saying that they largely trust business contacts made online.

Online recommendations and networking were found to be playing a more significant part in modern-day business practices than ever before, with more than half of respondents seeing a significant proportion of their new business being generated through referrals. More than a third of those surveyed (35 per cent) also said they were now keen to become a part of online business networks.

"Relationships and networking are all essential elements of running a successful company and small businesses, in particular, rely on recommendations and personal introductions," commented Ivan Croxford, head of market development at BT Business.

"We may not go to as many face-to-face meetings, but we're communicating and sharing thoughts a lot more, using e-mail, blogs and social networking sites in both our business and personal lives.

"That's set to continue and grow, as small businesses begin to see the real benefits of the latest technology, which give them the ability to interact more easily and meaningfully with customers, partners and suppliers."

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)