Over 6000 small businesses in the UK are using Twitter on a daily basis, says a recent study from mobile phone operator O2.

O2 surveyed over 500 small businesses finding that nearly two in ten are using the free social networking site.

Taking this stat and multiplying it by the number of small businesses in the UK, O2 guesstimates that around 700,000 such companies are possibly using the micro blogging service.

Cost cutting was one of the main reasons for businesses getting involved in Twitter, with the site used for marketing and to recruit new staff with one in ten quizzed claiming they had been able to save up to £5000 since signing up.

The survey showed businesses are using Twitter to market their services, to keep in touch with customers and suppliers - and to monitor competitors.

And in what should send a warning to the more established players, four in ten questioned said they are now using Twitter more than LinkedIn or Facebook.