Economic agencies in Northern Ireland have come under fire from senior academics who claim small firms could be losing out on e-commerce opportunities because government-sponsored internet awareness schemes are ineffective.

New research shows that small to medium-sized businesses in the North are badly lagging behind their counterparts in the United Kingdom when it comes to e-commerce and e-business performance.

According to the University of Ulster, a "digital divide" has emerged between companies and individuals who have embraced internet technologies, and those who have been left behind.

Dr Patrick Ibbotson from the school of business at the University of Ulster, has said that the role of government agencies in the North, who are responsible for promoting internet awareness, and private sector consultants must be called into question.

Dr Ibbotson is one of the authors of a critical new report that claims that government-sponsored initiatives are "not achieving the required response".

The report entitled Bridging the Digital Divide: Why SME Development Agencies Need to Take A Long Look In The E-Mirror, was compiled by Dr Ibbotson, Ms Denise Crossan from the University of Ulster and Belfast-based telecommunications firm nevada tele.com, and Mr Martin Fahy from NUI Galway.

Details of a survey contained in the report were presented yesterday to the Irish Academy of Management Conference at the University of Ulster's Magee campus in Derry.

It showed that a high percentage, 88 per cent, of companies in Northern Ireland have access to the internet, but few are using it for business purposes.

It also revealed that fewer than one in five people who advise small business on e-commerce felt confident enough to deal with a company's questions on the subject.

Over half of the business advisers who took part in the survey said they rarely or never used the internet or e-mail at work