One in six small firms in Ireland still have no online presence.
One quarter of these SMEs reported that they are being kept offline due to poor broadband connectivity in their area.
The new survey also found that, of those, 55% have no intention of building a website any time soon.
Approximately 60% responded that they have "no need" to be online, 35% said they didn't have enough time to set up a website, and 9% cited a lack of expertise.
The 'dot ie Digital Health Index' survey of 500 SMEs was undertaken by Ignite Research on behalf of IE Domain Registry (IEDR) in April.
As well as websites, the Index also took into account social media presence and apps.
The proportion of companies with zero web visibility had fallen from close to a quarter nine months to a fifth in April.
A related survey of 1,000 consumers found that SMEs are missing out if they are offline.
Three-quarters of consumers responded that it is extremely frustrating when they couldn't find a business online, and a similar percentage said that a firm is more likely to get their business if they have a clear web presence.
