Smaller firms in the UK are not aware aware of the benefits broadband technology, while small to medium-sized enterprises fail to capitalise on the benefits of the service, according to the latest research.

The Broadband Stakeholder Group (BSG) report studied how SMEs engage with connectivity, policies that would support the use of broadband.

The report also suggested five ways SMEs can exploit potential and make better use of technology.

It recommended that government should expand broadband use for SMEs and provide better information for the policy makers to persuade the companies about the benefits of being online.

The report also suggested that industry and government need to know the bandwidth requirement of SMEs well, while the Department for Culture, Media and Sport should strengthen central resources within Broadband Delivery UK to help local bodies to stimulate demand.

BSG CEO Pamela Learmonth said while tackling infrastructure issues is costly and time-consuming, understanding the usage of infrastructure and communicating the benefits of doing more online is arguably even more challenging.

"Given the high importance of capturing the economic benefits from both private and public investment in broadband, we hope this report is a useful input, building on existing initiatives to ensure the UK’s SMEs really do capitalise on the connectivity available to them," Learmonth said.