Small local businesses received a fillip with the news that over half the population would prefer to buy from them than from a large nationwide company, according to a survey from Lloyds TSB Business.

The survey showed 53% choosing local start-up businesses over established national concerns. A further third of those surveyed expressed no preference between the two options, while a mere 3% would favour the well-known nationwide brand over its smaller competitor.

Nearly a fifth (17%) were persuaded by the more personal service offered by smaller companies, while one in ten (11%) believed that small local firms are more likely to do a good job to keep their business going. A quarter (25%) of those asked felt it was important to support local industry.

Fewer than one in ten would shun a smaller business for fears it would fold, while a surprisingly high 95% were relatively unconcerned about the small business’s competitiveness on price or quality.

Stephen Pegge, head of external communications, Lloyds TSB Business, says: “it is clear that people still identify with the entrepreneurial spirit, and are willing to support smaller local firms. This is a real vote of confidence and shows potential entrepreneurs that they can compete with the ‘big boys’ if they have a good product or service to offer.”