Small businesses in Scotland and London are the biggest adopters of digital skills in the UK, although a high proportion have yet to develop a strategy for dealing with cybercrime.
New data shows more than two-thirds (70%) of small businesses in these areas have developed basic digital skills, compared with the UK average of 62%.
Lloyds Banking Group Business Digital Index surved 2,000 small businesses and charities across the UK, including 109 in Scotland.
Cyber security is rising in prominence as a reason for small businesses not doing more online and 57% of Scottish firms said they still need to invest in cyber security, lower than the UK average of 69%.
Under a quarter of Scottish small businesses (23%) are using digital to support their overseas trading and 37% have no website.
Only a half (51%) of small businesses in Scotland have created social media communities and 44% are still not investing in digital skills.
Philip Grant, chairman of the bank’s Scottish Executive Committee, said: “It’s clear that being online can open the doors to opportunities, as well as cost and time saving benefits.
“We must do more to encourage small businesses based in Scotland to invest in digital skills, allowing them to make the most out of being online and to reap the benefits.”