The Federation of Small Businesses has warned that small companies are failing to make the most of the potential of ecommerce due to concerns over online security.
According to the organisation, just 18% of small businesses have a transactional online presence and only 1% derives all their sales through the internet. Almost one in five small firms (19%) said they were concerned about credit card fraud, it added, although only 6% have actually been victims of this crime.
The FSB's warning follows a recent report by the House of Lords on personal internet security which highlighted the growing problem of internet crime.
The small business lobby group is backing proposals made in the personal internet security report, including the suggestion that victims of online fraud should be able to report such crime to the police and receive a crime reference number in the same way as any other type of crime.
It is also getting behind proposals to force banks to take some responsibility for losses incurred as a result of electronic fraud, claiming many small businesses and online retailers are caught by charge-backs from card fraud which they often receive months down the line, even after they think a transaction has been successfully processed.
"E-crime needs to be given the same status as crime that is committed against a bricks and mortar business," said David Croucher-Jones, FSB home affairs chairman. "Only when this is accomplished, by implementing the Lords recommendations, can more small businesses benefit from having a stronger online presence.
"Customers will also benefit from the increased choice and convenience that online security can bring," he added.
The FSB is also supporting work to establish a national e-crime co-ordination unit with the Metropolitan Police and backs initiatives such as Get Safe Online, which are designed to create a safer online environment for businesses and consumers.