Despite the increasing popularity of social networking websites like Twitter and LinkedIn, face-to-face networking is more important than ever for small businesses, according to a study conducted by a business networking site.

Business Scene.  They have questioned 500 small businesses and found that two thirds (66%) of SMEs are now networking in person at least once a week. Over a third said that networking is now crucial to the success of their business, and they are prepared to devote money as well as time to expand their network.

Although the use of social media sites is often free, a quarter of small business owners admit they spent more than £1000 on networking in person over the last year, with a further 26% paying between £100 and £499.  The research discovered an impressive return on these investment, with one in five SMEs (20%) stating that they made more than £10,000 through networking in the past year. Almost half (44%) made more than £1,000.

More than half (51%) of those surveyed recognise that networking in person is not about immediate business leads, but more about getting to know people. Almost a third (31%) of SMEs speak to more than 10 people at every networking event they attend. When asked when they prefer to attend such events, 27% said at breakfast, 25% liked evenings and 34% were happy to network any time of the day.