A new study finds 71 percent of British Web designers feel insufficient investment is hindering the success of small-and medium-sized enterprises on the web.

The study released earlier this month by Web host Fasthosts finds high expectations and low budgets have had a negative impact on UK-based Web designers over the past two years.

Fasthosts surveyed 300 UK web design firms, with an average of 20 SME clients, to find that 72 percent have faced an increase in expectations from SME clients while two thirds of companies are working with lower budgets.

The survey shows that over the past two years, Web designers have been expected to produce more with less. One third of web designers surveyed said they are expected to provide more out-of-hours work, with half providing work free of charge.

“For many small firms, using external web professionals is a very sensible and rewarding option,” said Steve Holford marketing director of Fasthosts Internet Ltd. “It’s clear that in recent years, web designers have worked hard to adapt to the needs of clients and demonstrate the value they can deliver. With the right approach from both small businesses and the web design community, online revenues can be successfully built and so help the UK economy in its return to growth.”

Although over half of web designers surveyed said their advice has led to significant developments in clients businesses, 46 percent of web designers feel SME clients could more carefully consider the financial needs of their web design partner in addition to their own needs.

The survey finds 1 in 3 companies have cut their hourly rates, and have seen a 44 percent reduction in customer wins. 56 percent of Web design firms have been negatively impacted by an increase in cut-price competitors.

Almost 75 percent of Web designers said their clients under-estimate maintenance requirements of a website following its launch.

54 percent of those surveyed said a low technical understanding from clients has impacted the success of projects created in recent years. 1 in 3 Web designers cite insufficient time with clients as a problem.

That said there are an estimated 3,000 new media agencies in total in the UK with the market for providing interactive services valued at £600m.

66% of all agencies are based in London or the South East.