According to the FSB, economic growth in the UK will be held back if the government fails to make the right decisions when it comes to high-speed broadband. The Federation claims some UK firms are still unable to use e-commerce because they cannot access super-fast download speeds.
In a survey, 9% of small businesses and freelancers said they could not access next-generation broadband at all, and 22% more said at least one of their sites had no access.
If SMEs had access to the full range on online services, the FSB says UK companies would find online trading a lot more profitable. But in order to ensure economic growth, fast, guaranteed and reliable broadband is essential for all businesses, irrespective of size and location.
The coalition has committed to providing broadband coverage for everyone in the UK by 2015, as well as super-fast coverage for nine out of ten properties in every local authority area.
However, private sector investment is still focused on urban rather than rural areas and this could cause problems for freelancers and small businesses located outside towns and cities.
The FSB's national chairman, John Walker, explained that online trading not only allows small firms to capture new markets and expand their range of products, but also lets them compete with larger companies on an equal footing. But barriers such as slow broadband speed are holding small businesses back.
Mr Walker is urging the coalition to make sure all SMEs have super-fast broadband connection so that they can trade online if they so desire.
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