According to 1,000 responses from managers garnered from the Barclays Business Regional Impact Index, the capital leads the index of small businesses making substantial contributions to their local area.

The survey ranks regions on indicators including profitability, growth projections, employment generation, and innovation.

Yorkshire and Humberside have the highest proportion of businesses that make a profit, whereas SMEs in the South West lead on innovation and firms in Central England have seen the greatest increase in turnover.

Professor Robert Blackburn of Kingston University says: ‘Small businesses make a major contribution to their local and regional economies. However, it is also important for these businesses to look for customers and markets further afield if they are to move to a next stage of development.’