The government has been urged to adopt more ambitious broadband targets to meet the country's digital requirements.
In last week's Queen's Speech, the government confirmed it is bringing forward measures to give every UK household a legal right to a fast broadband connection.
The Digital Economy Bill states that a minimum broadband speed of 100Mbps will be guaranteed through a Broadband Universal Service Obligation (USO), although it points out that properties in the most remote areas may have to contribute to the cost of installation.
The legislation has been designed to improve access to high-speed broadband across the UK and establish the country as a "world leader in the digital economy".
However, Liberal Democrat Treasury spokeswoman Baroness Susan Kramer believes the plan falls considerably short of what business start-ups currently require and expect to need in the future.
Speaking to City A.M., she noted that the government is pushing for advances such as driverless cars and peer-to-peer lending, all of which represents "very disruptive change".
Baroness Kramer said all of this depends on the country having adequate broadband capacity, as technology is "going to change the way we are going to do everything".
"But if you want new entrepreneurs to participate in that, then these ambitions for 100Mbps connections aren't large enough to meet those needs," she commented.
“What the government is calling call high speed, I think most people who are trying to build a new, technology-driven business, find quite an embarrassing definition."
Baroness Kramer added that it is "just not high-speed in the way that they look at it".