A quarter said they found it difficult to keep pace with new developments, one in ten don't use e-mail and a third are not hooked up to the Internet.

In fact, the Lloyds TSB poll found only half of small business owners thought technology had improved their working life.

Spokesman Stephen Pegge told Sky News:

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