The Irish Small and Medium Enterprises Association has called on the Government "to get serious" about the 'Smart Economy' before Ireland "becomes the laughing stock of the developed world".
An ISME survey of internet and computer technology usage in SMEs has confirmed the increased use of technology, including the internet and e-mail.
However, the association has said: "A major opportunity is being missed, with only 28% of enterprises using the net for on-line selling, due to inadequate broadband infrastructure."
The response of the 800-plus companies to the survey confirm that only one in four companies (28%) use the internet for on-line selling.
Up to 98% of companies use the internet for business purposes, with 83% of companies having their own web-site.
It also found that 39% of companies reported that the internet has reduced their business costs.
From those who responded, 71% have generated additional business from new customers, with 47% increasing business with existing customers.