According to new research by the Federation of Small Businesses (FSB), small businesses are being held back by poor broadband and mobile-phone connections.

The FSB’s new digital-infrastructure report (www.fsb.org.uk) — Lost Connection — shows that a third of firms (33%) are struggling with broadband speeds that are insufficient for their current business needs, while two in five (40%) say that their broadband is not good enough for their future needs.

The report also explores mobile connectivity, with data showing that almost half (45%) of small firms cannot get a good connection on their mobile phones; this figure rises to 57% in rural areas.

Connection issues are restricting the growth and productivity of small-business owners, with nearly one in three (32%) reporting that poor mobile and broadband connection has prevented them from contacting (or being contacted by) existing customers or potential new clients.

A similar number (30%) say that poor connection is a barrier to growing their business, while over a quarter (26%) say that poor mobile coverage has led to a loss of business or sales.

With over half (52%) of business owners saying that they want to adopt ‘full fibre’ broadband when it becomes available in their area, Prime Minister Boris Johnson’s ambitious promise of nation-wide full fibre or gigabit-capable broadband by 2025 must be kept, according to the FSB.

It is calling for the Government, industry and regulators to work together to remove barriers to the roll-out of full fibre, to resolve the productivity puzzle, and to ensure no-one is left behind, as the UK enters the fourth industrial revolution.