THE North is in danger of lagging behind in the e-commerce revolution because companies feel their products are inappropriate for the Web, according to business advisor Grant Thornton.

The findings of Grant Thornton's ninth European Business Survey show that almost half the companies in the region feel their product or service is unsuitable for e-commerce.

There are similar findings in the North-West, Devon and Cornwall and East Anglia.

But in Scotland and Wales, only one company in five thinks it cannot do business on the Web, and in Northern Ireland only one company in four is not interested.

Mark Hargreaves, managing partner at Grant Thornton, in Newcastle, said: "If other areas with a similar economic background are embracing the opportunities of the Internet, then so can we. The fact that so many companies in the North feel the Internet is not for them is worrying and our advice is that every company should consider its own e-strategy."

The North's reluctance contrasts sharply with the general findings of the European Business Survey, which shows that owner-managed businesses in the UK and Ireland are leading the rest of Europe in the race for an e-commerce foothold.

The statistics are the result of a survey by Grant Thornton and forecasting consultancy Business Strategies.

It shows that 59 per cent of UK owner-managed businesses have an e-commerce strategy, 14 per cent more than the EU average.

Andrew Godfrey, Head of Growth and Development Services at Grant Thornton in the UK explained: "Owner-managed businesses across Europe readily accept that e-commerce is much more than simply having a presence on the Internet.

"They know that e-commerce can bring businesses a real competitive advantage and it is essential that firms are prepared to explore the opportunities that the web provides. So far, it seems a high percentage of European countries are yet to develop significant strategies to drive this forward.