A study by UK Online for Business revealed that half of firms now order goods and services online, a 52% increase on last year.
E-commerce minister Stephen Timms said, "UK businesses are beginning to make the best of, and get the benefits from, new technology, but we must not stop there."
Companies understand that e-business is no longer just about having a Web site or e-mail, he added.
The report revealed that take-up of e-business technology in the UK is steady compared to last year, with 91% of businesses having access to the Internet, and 80% having a website.
However, the report also found that the proportion of businesses using ICT has not increased greatly in the last year, although UK companies are making more sophisticated use of the technology available to them.