The majority of small businesses in the UK have yet to realise the commercial benefits of the internet, according to a new report.
The UK Online study found two thirds of British firms with fewer than ten employees have no internet connection.
Over half (51%) of those that do do not have a company website, while 17% are still on dial-up.
Shane Redding, chairman of the Institute of Direct Marketing, said:
"Small businesses have been relatively slow to reap the rewards that an effective online presence can bring.
"There is a clear need for small business owners to better understand the opportunities available so that they can continue to thrive and compete against larger businesses."
The survey covered 600 UK firms.