6:58am UK, Wednesday June 28, 2006

One in four small firms finds it difficult to keep pace with new technology, according to a new report. 

A survey found that a tenth of smaller companies do not use email - and a third do not have use of the internet.

180 computer screen keyboard officeworker

Many not on internet

The poll of more than 100 businesses by Lloyds TSB showed that only half believed new technology had improved working life.

One in five said computers had taken the "personal touch" out of working relationships.

Stephen Pegge, head of communications at Lloyds TSB Business, said: "Small firms have tended to limit their use of technology to communicate and organise information.

"But they have been slower to wake up to the opportunities these tools might present for purchasing, production and distribution.

"If small businesses fail to invest for the future, they may not meet customers' expectations and could find they are soon overtaken by more efficient and more productive competitors."

Half of those surveyed said they spent less than £5,000 on computers or internet connections in the past year,