Lower technology investment by small businesses is impacting their business performance and the broader Australian economy, according to new research commissioned by NBN Co.

The Connecting Australia report found that, while 86% of small businesses say high-speed Internet is important to them, they only invest an average of $5000 a year into technology.

It found businesses with the highest Internet spending growth grew revenue and employment by 6% and 4.8% respectively, while those with the lowest Internet spending growth saw only 0.3% revenue growth and shed 0.6% jobs.