Small businesses are failing to grasp new technologies which could help their business, says a new report by the Federation of Small Businesses (FSB) and software company, Intellect.

The report surveyed 2,200 people from small businesses across the country in order to understand how they were investing in technology.

According to fsb.org.uk, the research found that 85 per cent of SMBs identified investment in technology as a key driver for growth. 62 per cent said that technology had a positive impact on how they communicated with their customers and 53 per cent said that it helped them target new customers.

However, only 26 per cent of SMBs were found to be implementing the newest technologies, such as cloud-based services. A quarter of the businesses said that improved skill levels for staff would help them to invest more in technology.

Mike Cherry, national policy chairman for the FSB, said: “In order for small businesses to maximise the opportunities that technology presents, we needed to build the understanding and skills of both the management and the workforce. This report gives clear recommendations about how to do that.”

The FSB is the U.K.’s largest campaigning pressure group, which protects the interests of small business owners, including franchise services.

George Freeman MP commented on the report, telling cloudpro.co.uk that it highlighted just how far many businesses still had to go. “Only 79 per cent of companies had a website – that leaves 21 per cent without one. There’s no reason for that,” he said.