
Finance companies are more cautious of lending to web-based businesses, according to one expert.
Since the dotcom bubble of 2001 burst entrepreneurs looking to finance online start-ups will find it more difficult to secure funding, says Simon Briault of the Federation of Small Businesses.
He claims that the resurgence in popularity of e-business has so far not fully suppressed fears of another bust.
"There are more people with access to the internet than ever before and entrepreneurs are naturally taking advantage of the opportunities this provides," he said.
He added that lenders were mindful of the history of web-based business and that since 2001, "the increase in these types of businesses has been cautious rather than frenetic".
A recent study by Fasthosts found that online businesses are being let down by the standard of customer service they provide by email.
The report found that 78 per cent of customers have been disappointed by the response speed of internet business in the past and that as a result, 89 per cent sought the services of a competitor.