The government must show greater commitment to its plans for high-speed broadband for the sake of the business sector, it is claimed.
John Wright, National Chairman of the Federation of Small Businesses (FSB), said UK companies are not receiving the broadband speeds they need to achieve their potential, limiting their ability to contribute to economic recovery.
He pointed out that the rise in e-commerce has made it essential for small firms to conduct business online, and this requires safe, reliable and fast broadband access.
Mr Wright commented: "By 2012, £1 in every £5 will come from online commerce, but if small businesses are to compete, the government must take bolder action.
"With Japan leading the way, making high-speed broadband of 90Mb available to everyone, the FSB urges the government to do more."
Digital Britain MP Stephen Timms recently told the Daily Telegraph that many households and businesses now regard broadband as an "essential" part of their lives.