Companies are being encouraged to get connected

A Scottish Executive incentive scheme hopes to get 5,000 new companies to take advantage of the faster connection.

The business broadband incentive scheme is backed by £1.5m of executive funding.

A £300 payment is available for businesses who want to install a basic ADSL or equivalent connection or £1,200 for more complex connections.

Enterprise Minister Jim Wallace said new independent research, to be published later this week, would back the executive's strategy of increasing broadband take-up through measures to stimulate demand.

Companies who don't have an internet presence will increasingly become invisible Jim Wallace Enterprise Minister

Speaking at an e-Business Week event in Dunfermline, Mr Wallace said: "Improving digital connectivity and increasing demand for broadband access is vitally important and a key priority for the executive.

"The faster internet access broadband offers increases business efficiency, enables greater exploitation of e-business opportunities and improves competitive performance.

"The initiative has already been piloted in the north east and so far more than 600 applications have been received, which is very encouraging, and I'm delighted to announce its rollout around the rest of the country."

The scheme is being managed by Scottish Enterprise and offers small and medium sized companies access to funding.

"More than 75% of companies now look on the web when searching for a supplier.

"Companies who don't have an internet presence will increasingly become invisible," the minister added.