FEARS over the uncertainty and instability in the eurozone are preventing small and medium-sized businesses in Yorkshire from exploring the potential of trading overseas, it is claimed.

A survey of firms in the region by invoice finance specialist Bibby Financial Services revealed that 20% of firms said they have never considered exporting at all.

And 21% of firms in Yorkshire cited the eurozone crisis – with the resulting market instability and impact on exports – as having the biggest negative impact on the day-to-day performance of their business.

Bibby said it was this outlook that was stopping firms widening their horizons and targeting new business opportunities around the globe.

In addition, more than one in 10 business owners and managers in Yorkshire said the costs and regulations involved in exporting were preventing them from trading in foreign markets.

UK trade figures show that the country remains a net importer from Europe – with the gap between imports and exports growing by 86% in the past year. UK exports to the EU fell by £11.4bn in April – a drop of more than 20% from March.

Mark Storey, spokesman for Bibby Financial Services in Yorkshire, said: “Trade to EU member states is clearly being affected by the European debt crisis, but to find that this issue is preventing Yorkshire businesses from any involvement in overseas trade is a huge concern.

“Identifying opportunities for growth in new markets is vital to the longevity of any business and it is important that the effect of current turmoil in Europe on the day-to-day performance of firms in Yorkshire is kept to a minimum.

“Equally, business owners and managers in this region should not overlook a pool of potential international customers because of fears associated with the financial, cultural or legal implications, as there is help and support available to overcome such barriers.”