BURY firms and those elsewhere in the North West are losing out to more IT (information technology) competent competitors in London and the south, according to a new survey.

Less than half of all small businesses in the North West have access to the Internet.

In contrast, nearly two thirds of small firms in the Thames Valley and more than 60 per cent in London and the South West are now online.

The nationwide Small Business Watch poll of 1,500 small firms, commissioned by Yell -- formerly the Yellow Pages Group, with UK online for business, a partnership between industry and Government, reveals that 52 per cent of UK firms are now using the Internet and a further 15 per cent expect to be doing so by next year. Patricia Hewitt, Secretary of State, Trade and Industry said: " It is hugely encouraging to see that more small businesses are joining the information age, but it is important for other companies not to get left behind.

"E-business is going to power the way we do business and companies must look to extend and expand the way in which they use technologies if they are to gain the true benefits."

Findings also reveal strong regional variations amongst the number of firms with Internet access.

Compared to the national average, 49 per cent of small businesses in the North West operate online and 17 per cent anticipate doing so in the near future. Only the West Midlands, Yorkshire and Wales have fewer firms using the Internet.

Some 45 per cent of business users in the North West claim an increase in sales inquiries and a quarter a boost in profits since going online.

Just over half of business users purchase goods or service online and more than one in four companies sell to consumers via the Internet. Twenty-six per cent sell to other businesses or government.