Although 83 per cent of small and medium-sized firms now have their own websites, just 28 per cent of them use the internet to sell their goods and services, according to new research.
A survey of over 800 companies by business group Isme shows that 71 per cent of SMEs say they have gained additional business from being online.
However, the study also reveals that most firms prefer using the internet for banking, communications, sourcing suppliers and marketing purposes rather than for generating new business.
The main reasons given for the lack of online selling are the availability, standard and cost of broadband and, to a lesser extent, the lack of expertise within individual companies.
Overall, 98 per cent of firms use the internet for business purposes.
According to the survey, 39 per cent of firms report that the internet has reduced their business costs.
About a quarter of businesses have embraced social networking with the majority having a profile on Facebook.
Isme said there is an increasing appreciation of the contribution of being online for small businesses. However, the group's chief executive Mark Fielding, called for action to ensure that businesses have better quality broadband access.
"The lack of adequate broadband is a major obstacle for businesses wishing to sell online. The Government must act on the broadband issue to ensure that Irish SMEs are able to use the technology as a sales and marketing tool, essential in today’s climate,” he said.
