Two out of three small firms in the North have made no preparations for the euro and more than a third of small to medium-sized firms have no idea that euro notes and coins will be introduced next January, according to a new industry survey from the University of Ulster.

More than 400 firms in Northern Ireland took part in the euro awareness survey but 30 per cent had no idea it would not be possible to continue to trade in national currencies from next January.

Although more than half taking part in the survey buy or sell goods and services to and from euro zone countries, most firms have no idea when coins and notes come into circulation.

According to the authors of the report, Mr Patrick Ibbotson from the University of Ulster's school of business, retail and financial services and Mr Michael Smyth from the school of economics and politics, 76 per cent of all firms surveyed have made no preparations for the euro.

"The results are pretty grim given that Northern Ireland is the only region [within the UK] with a land frontier with the euro zone.

"There is very little hard evidence to suggest that small to medium-sized firms are well prepared for the euro and in many instances they seem to have adopted a 'so what' approach to the new single currency," Mr Smyth said. But he said despite the lack of preparation many firms, 76 per cent, also believe the euro will affect their business.

"Exactly 25 per cent of firms felt the Republic's membership of the euro and the UK's non-membership would adversely affect their business.

"The smaller the firm, the less adverse is the perceived effect of the Republic's membership of the euro upon their business. Conversely the larger the firm responding, the greater level of concern," Mr Smyth said.

He said a key message from the survey was that Northern firms near the Border believe it will be more difficult for them to compete on prices with their counterparts in the South from next January.