A NORTH-SOUTH divide exists in the number of equity investments made in UK small businesses with Yorkshire missing out, according to a report.

The British Business Bank’s latest Small Business Finance Markets report found the number of equity investments in the UK small firms sector fell by 17 per cent last year.

An equity investment is an investment by individuals or firm and is usually in the form of stocks.

The report also found Yorkshire and the Humber is suffering with its equity investment, as it continues to be concentrated in London and the South East.

It found 58 per cent of the total deals and 69 per cent by value took place in London and the South East. This compared to three per cent of deals and two per cent by value for Yorkshire and the Humber.

Meanwhile, the report also found that 37 per cent of small businesses are expected to grow this year, compared to 56 per cent in 2016.

A total of 71 per cent said they would prefer to grow at a slower rate, rather than borrow to grow faster.

Andy Caton, Bradford Chamber of Commerce president, said: “Conditions continue to be tough for many firms, across a range of areas including credit and finance.

“However, many remain confident in future growth and so lending will play a part in that confidence.

“We have our own loan fund that is supporting many firms at the present time.

“Pressures due to the effect of Brexit are also being seen and so we have to make sure that there is as little disruption to the daily lives of businesses as possible.

“I think many of our members would concur with one of the findings in this report – that they may settle for lower levels of growth than forecast 12 months ago.”

Keith Morgan, British Business Park chief executive, said: “Our report shows that smaller businesses still face challenges on their growth journey.

“Despite the improvement in finance markets, many seem to be holding back on their ambition, not simply because they can’t access finance but because they’re cautious about seeking it in the first place.”

The British Business Bank is a government-owned business development bank dedicated to making finance markets work better for smaller businesses.

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