RURAL businesses are being frustrated by the lack of broadband connections to their computers, according to a leading lobby group.

The Federation of Small Businesses (FSB) conducted a survey among business owners, and found many would sign up for faster internet as soon as it became available in their area.

While the four major telephone exchanges in Worcester have been upgraded to accommodate broadband connection, businesses in rural parts of Worcestershire and Herefordshire are still struggling with slower, standard connections.

Broadband greatly increases speed of access to the internet, including sending e-mails and retrieving information.

Angela Smith, regional organiser for the FSB in Herefordshire and Worcestershire, said the survey had revealed a large demand among business owners for broadband.

"This latest snapshot of business-thinking demonstrates a huge appetite for broadband with 32 per cent of non-broadband users saying they would sign up as soon as the new technology becomes available," said Ms Smith.

"Just 17 per cent of respondents have no plans to use broadband in the future."

She said it did not appear as if alternatives to upgrading telephone exchanges to broadband, such as satellite and mesh radio, were genuine solutions for businesses in rural areas.

"Less than one per cent of business owners are connected to the internet via satellite and only two people who responded to the survey use mesh radio," she said.

The FSB's survey, covering 2,676 firms, follows recent criticism of Government rural broadband initiatives by both BT and the Countryside Agency.

Far from painting a picture of business owners not interested in new technology, the survey found that 83 per cent of small firms had derived significant benefits from investing in IT.

Peter Scargill, FSB IT chairman, said the lack of fast, always-on internet access was preventing small firms from taking the leap to trading on-line.

"Although some UK regions have already taken the initiative to kick start the roll out of broadband, overall the Government has made a slow start.

"It must act to ensure that rural areas do not get left behind."

The FSB is the largest organisation in the UK representing the interests of small businesses and the self employed, with 180,000 members.

For more information click on: www.fsb.org.uk