Businesses in the Yorkshire region are lagging behind their counterparts across the UK when it comes to trading online, according to the DTI's International Benchmarking Study 2004, published this week.

The findings, regarded by e-commerce minister Mike O'Brien as "disappointing" were produced independently by Booz Allen Hamilton for the Department of Trade and Industry.

They suggest that only 32 per cent of businesses in Yorkshire and Humberside are trading online.

The region has also begun lagging behind in other areas of e-commerce, with the number of businesses allowing customers to pay online falling to 15 per cent. This has also been reflected in an overall drop in the region's businesses offering online sales (11 per cent). Elsewhere, the report also shows that 44 per cent of businesses using technology do not measure its costs and benefits.

But there are some positives in the report. The region has seen steady progress with connectivity, 94 per cent of businesses having access to the internet and 86 per cent having a website. There has also been an increase of four per cent to 93 per cent of businesses using external emails.

Mr O'Brien said: "The findings about trading online are somewhat disappointing, and given today's competitive and global business environment, these organisations risk being left far behind their competitors.

"We therefore urge businesses in Yorkshire and Humber to now seek advice from their local Business Link adviser on 0845 600 9006 to take advantage of what technology has to offer."

He said he was encouraged that businesses in the region with ICT were using it to greater effect, in terms of online trading and were demonstrating strong performance. "Huge opportunities still exist for these businesses to further exploit technology and fully integrate their business processes through the use of ICTs. This will help revolutionise their business, making it even more efficient, competitive and profitable whatever the level or size of the business."

Other key findings for Yorkshire and Humberside from the International Benchmarking Study 2004 include:

29 per cent of businesses using technology think they should measure the benefits of IT

78 per cent of businesses have a LAN (local area network)

Set-up costs are the biggest barrier to the adoption of technology.

Updated: 11:31 Thursday, November 18, 2004