Competition from post-recession start-ups is the biggest threat to one-in-four SMEs in Yorkshire, research by business funder Bibby Financial Services has revealed.
However, SMEs in the region expect to invest in their businesses during the third quarter of the year.
As official data shows the number of new UK businesses reached a five-year peak in March, SMEs in Yorkshire listed “increased competition” as their biggest fear in today’s brightening financial climate.
The SME Tracker, which surveys firms with a turnover of up to £25m and up to 250 employees, saw 26% of businesses in Yorkshire citing an increase in competitionas their biggest worry.
Meanwhile, 9% believed that red-tape is the biggest challenge they face.
Mark Storey, managing director for Bibby Financial Services in Cleckheaton, said: “This is certainly a different picture from just a few years ago and Yorkshire and Humberside has returned to its position as a breeding ground for innovation and entrepreneurship.
“The economic downturn has fostered a DIY ethos in the country, which is now paying dividends for the economy.”
