BUSINESS leaders in York say they are eager to engage with the Northern Powerhouse agenda in the hope of achieving tangible results as new research reveals only half of small firms in the North believe the initiative will have a positive impact on their business.

The study by the Federation of Small Businesses (FSB) also found that more than a fifth of the 3,000 members surveyed said they were not clear about what the concept meant, while almost a fifth still needed to be persuaded about the impact of a Northern Powerhouse.

North Yorkshire-based Emma Smailes, senior development manager for the north at the FSB, said: "Businesses in York and North Yorkshire want to see the detail of any devolution of power.

"They want to ensure that investment, improved transport links, improved digital infrastructure and skills are felt across the North of England rural and urban and throughout York and North Yorkshire.

"It is imperative that our rural areas are included and not left behind or excluded in any of the devolution deals."

Within the FSB research northern businesses listed their top priorities for a Northern Powerhouse, which included greater local control over spending as well as investment in transport and skills.

Investment in transport and skills was also quoted a key outcomes from the proposed Powerhouse by business leaders in York.

Heather Niven, head of Science City York, said: "In the North we take the time to build relationships with the people around us and to seek ways to distinguish ourselves through our ‘Northern-ness’.

"What’s needed to help develop our unique offer to the world, is more investment in infrastructure such as roads, rail and air, more engagement with investors and incentives to bring people to the North as well as collaborative marketing.

"‘Powerhouse’ has connotations of power stations, grime, and the sunset industries but the reality of the North is cutting edge science, world class creativity and an amazingly beautiful place to live, work, study, visit and do business.

"Working in partnership with destinations across the North is already paying dividends and make perfect sense, we just need to make sure we maximise the opportunities this presents."

Also calling for more engagement is Ed Everard, York and North Yorkshire Chamber president, who said: "While some businesses are indeed ambivalent towards the claims being made by Government spokespeople on this agenda, they do indeed want to see tangible outcomes, many are also excited by the prospect of a Northern economy that has greater control over its own destiny, with the powers and funding to make a difference.

"We understand why there is doubt about delivery but we can challenge that by being involved in the process and the outcomes, not in areas like transport projects, but in investment and workforce skills, for example, and engaging with ministers on this.

"There’s always room for the message to be communicated better and it’s right that ministers be held to task on the promises they make but if Northern cities can become better-connected and provide greater opportunities for increased wealth creation and prosperity we should certainly strive to help achieve that."

The Northern Powerhouse has the potential to "transform York's economy" according to Stirling Kimkeran, chairman of the York Economic Partnership, however he said this can only happen if the the plans "translate into tangible work that SMEs can bid for individually, via a Tier 1 scheme or through consortium to deliver".

FSB policy director Mike Cherry said: "The concept and goals of the Northern Powerhouse have gained widespread support and awareness among businesses across northern England, but we now need to see tangible delivery and results for this support to continue and grow.

"Businesses want the ongoing political discussions about devolving powers to translate into real investment in the infrastructure northern businesses need. The way local authorities invest must reflect the priorities of local job-creating entrepreneurs.

"Our research shows that firms want to see a focus on improved transport links, digital infrastructure and workforce skills. Continued support for the concept of the Northern Powerhouse from the business community will depend on delivery of these priorities."

Chancellor George Osborne said: "Small businesses are the lifeblood of the economy and their support is crucial to help build the Northern Powerhouse.

"It is less than two years since I first set out ambitious plans to make this a reality and it's fantastic that so many small firms know about and support our plans.

"As this research recognises, our devolution revolution is already empowering local areas, in the most fundamental shake up of the way the country is governed in a generation."

The study was published ahead of the FSB's Policy Conference in London on Tuesday.