The Federation of Small Businesses (FSB) has warned that too many smaller firms are being held back by inadequate broadband.
According to the latest figures from Ofcom, around 500,000 small businesses are unable to access superfast broadband (30Mbps)
Statistics also showed that around 230,000 still cannot access "decent" broadband (10Mbps).
This problem was found to be particularly widespread in business parks and rural communities, with about 65,000 small businesses in these locations lacking access to an adequate connection.
Responding to the data, FSB National Chairman Mike Cherry said: "Businesses want to embrace digital technology to compete and enhance their productivity, but to do this they need a decent connection and good quality service."
Although he acknowledged that superfast coverage has continued to improve, he warned the rate of improvement is not "fast enough to make inroads into the UK's productivity problems".
"It's essential that small businesses do not continue to be left behind due to poor broadband," Mr Cherry added.