A poll of 2,000 small Birmingham businesses revealed two-thirds believe the £33 billion HS2 high-speed rail link is a waste of money.
Those 66 per cent of firms said the rail link will fail to grow their businesses and help to re-balance the economy away from the South East.
Bosses think money would be better spent supporting city businesses, rather than infrastructure companies and manufacturers of the high-speed trains, some of which are based abroad.
The head of outsourcing website Freelancer.co.uk , which carried out the study, dismissed the scheme as a Government “vanity project” which would just result in higher rail fares.
Almost 85 per cent of the firms also reckon the rail link would do little to improve communication as they already effectively communicate using email, instant messenger and Skype.
Many of the respondents believe the Government is failing to see the benefit of and support new technology that are enabling businesses to grow and trade across the internet.
Some 64 per cent said high-speed internet access and e-commerce sites had done more for their businesses than the costly high-speed rail link to their city will do.
Matt Barrie, CEO of Freelancer.co.uk, said: “The survey finds that the high-speed rail link is nothing more than a vanity project for the Government, with highly questionable benefits to the business community in the cities it will be connecting.
“High-speed internet access has done more for Birmingham and the West Midlands than the colossal cost of building the high-speed rail link will ever do.
“Most small businesses have taken the initiative themselves and hired a programmer to develop for their businesses an effective e-commerce site, which allows them to trade across vaster distances than the high-speed rail link will allow.”
Homeowners in the Midlands blighted by the proposed HS2 high speed rail line could face a compensation wait of up to 12 years , it was revealed this week.