Two thirds of small businesses are still operating without an internet connection, according to a survey by ISP UK Online of almost 600 UK firms.
It found that 400 of the businesses, which all employ between one and ten workers, have no internet access.
Of those 200 firms with an internet connection, more than half (51%) have no company website, and almost one in five (17%) are using slow dial-up connections.
In addition, 18% do not use anti-virus software and 38% do not use a spam filter.
A third (37%) of small-business owners that are online use consumer internet packages instead of business-grade services, and are giving out consumer e-mail addresses on their business cards, company vehicles and promotional materials.
The DTI estimates the small-business sector accounts for 95% of all UK enterprise and almost one third of all private-sector employment.
UK Online contends that using consumer-based internet services leaves small businesses open to a lack of technical support.
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