Under 5 per cent of businesses in Ireland have websites and fewer than 10 per cent can receive email, a new survey has found.

The survey of some 200,000 businesses, commissioned by Bank of Ireland, highlights a slower-than-expected uptake of Internet technologies. The low take-up was found to be especially high among so-called micro enterprises - those employing fewer than 10 people.

Connectivity levels among firms employing more than 250 people exceeded 50 per cent. In terms of business sectors, between 5 per cent and 15 per cent of manufacturing companies had access to the Internet. The lowest levels of connectivity were found in retail and distribution, and in the hospitality, leisure and recreation sectors. Higher rates were recorded among the newer, knowledge-based sectors.

A complementary survey of 3,700 firms not connected to the Internet found 65 per cent of businesses in Northern Ireland had personal computers, compared to 52 per cent in the Republic.

Of Northern Ireland businesses, 76 per cent believe that the Internet is useful for businesses; only 45 per cent of firms in the South agree with them. About 40 per cent of firms in the Republic said the Internet was not useful for their businesses compared to 14 per cent of Northern firms.