In a survey of over 1,200 small businesses, nearly half (46 per cent) estimate the postal strikes could cost them between £500 and £5,000. In the run up to Christmas, one of the most crucial times of year for a small business owner, four out of ten said that they could lose trade (42 per cent) and 40 per cent said that their business reputation could be damaged.

Half of small firms are considering leaving Royal Mail but feel they are held to ransom because alternative carriers are too expensive and do not meet their needs. The FSB is urging Royal Mail management and the Communications Workers Union to reach an agreement as soon as possible so small firms can get back to business.

John Wright, Federation of Small Businesses National Chairman, said:

“National postal strikes have a devastating impact on already struggling small businesses. The wildcat strikes across the regions have already cost small firms dearly, with many predicting the cost to their business reaching several hundred pounds, but these national strikes are having a much more damaging impact.

“FSB research shows that more than half of small firms rely on Royal Mail to send over 80 per cent of their business post, and 40 per cent are concerned about the loss of trade and the loss to their reputation these strikes will cause. Almost half said they could lose anywhere between £500 and £5,000 over the course of the national strike action, which comes at one of the most important times of the year for any small business owner – Christmas time.

“Small firms rely on the Royal Mail to send their business post but they are caught in a classic Catch-22 situation with many considering deserting Royal Mail because the service is unreliable, but at the same time are unable to afford alternative carriers. The FSB is urging both sides to come to an agreement immediately.”

According to technology website IT Pro, technology could help provide services while Royal Mail is on strike, despite a lack of understanding about how information is shared online and potential data security concerns.

In addition, new software such as Microsoft’s Windows 7 is designed to give consumers peace of mind when it comes to web security, which could encourage more businesses to branch out while the postal service is unavailable.

Benny Har-Even, technology editor at IT Pro, said: “If the Royal Mail is proving unreliable, businesses and companies are going to start looking for alternatives and technology can play a role in that.”

In an October 20th statement to the House of Lords outlining attempts to avoid strike action from Royal Mail workers, secretary of state for business, innovation and skills Lord Mandelson

The Federation of Small Businesses has called on the Government to turn post offices into “business hubs”, establishing a business desk in every branch able to offer advice on banking, insurance and other services.

Meeting room facilities should also be set up to allow businesses to contact their customers, it was suggested.

FSB chairman John Wright said: “Post Offices are at the heart of many communities and act not only as a place to send invoices or to collect parcels, but as somewhere for small firms to network, and meet like-minded business men and women as well as potential customers.

“However, small firms are not being given a fully operational service and are severely let down by the lack of business services available.

“Making post offices into small business hubs -including dedicated business desks and a full range of financial services – will not only ensure the survival of the country’s post offices, but also the communities that they serve.

“The Government has committed to the importance of sustaining local communities and must now step up and support the Post Office to become a small business hub”.

“Most people know a family member or close friend who uncertain about using the internet so teaching them how to get online is the perfect gift,” said Stewart Fox-Mills, Post Office Broadband head.

“But as anyone who has tried to do this will testify, things can come unstuck when jargon and a basic lack of PC skills become insurmountable.”

The guide is part of the Post Office’s continued investment into the broadband market, and will aim to help all of those who are unfamiliar with the internet and broadband.

The Post Office says that eighty four per cent of their customers are new to the internet, and around fifty per cent of those have never been on the internet at all.