More than two thirds of organisations using the new .eu names think the new suffix is successful in attracting new business. However, half of the UK respondents were confused over what their domain actually represents.

Around half of users surveyed stated that the new domain had enhanced the image of their business. Some 43 per cent had seen increased accessibility to opportunities in Europe.

The statistic comes from a survey of more than 2,600 European organisations across the UK, France and Germany. The research was carried out by web host 1&1 , which found that 51 per cent of British small businesses are confused over what a .eu domain name actually represents.

German small businesses had a far better understanding of the meaning of .eu, with 73 per cent responding correctly. A total of 68 per cent of UK businesses using a .eu domain name registration believed it to be effective.