Local councils should be looking to invest in broadband networks to ensure small businesses are given every opportunity to succeed, it has been claimed.
According to the Federation of Small Businesses (FSB), investment in broadband and transport infrastructure is vital for growing enterprises.
The organisation has expressed concern that councils may seek to scale back such spending as a result of the government's austerity measures.
"During a fragile economic recovery such as this, there is no area where local small businesses are not integral to generating growth and prosperity," said Roger Culcheth, Local Government Policy Chairman at the FSB.
He said the federation is willing to work constructively with councils to improve the economy of local areas and to create successful and vibrant business communities.
"But, it isn't just up to the businessmen and women of those areas - they need to see a commitment by councils to maintain services and not place hurdles in the way of doing their jobs," he stated.
Last year, FSB Wales claimed small businesses in the principality were being left behind as a result of under-investment in rural broadband networks.