But barely half have a firm plan in place to develop IT systems to better meet the demands of customers.
"Customer service excellence and adaptability differentiate companies in competitive markets," said Bill Murphy, managing director of BT Business, which sponsored the research.
Meanwhile, customers are getting more choosy. Some 72 percent of small firms said that customers are more demanding than two years ago.
And 41 percent of customers had decided against purchasing a product or service from a small business because it was 'not responsive enough'.
Over half of small business employees believe that their company does not respond to customers quickly enough because they are swamped by day-to-day operations.
Nearly 80 percent of those questioned used mobile phones, two thirds were using laptops and over half had remote access systems in place. Only four percent used none of these.
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Digital NSW 2025 Showcase
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