LACK of skills among potential recruits, crime and red tape are the main barriers to growth for small enterprises in Yorkshire, according to a new survey by the Federation of Small Businesses (FSB).

The biennial survey, Lifting The Barriers To Growth 2006, is the biggest independent survey of its kind into the problems faced by small businesses in the region when trying to grow.

A quarter of businesses surveyed say basic skills deficiencies among job seekers including literacy, numeracy, customer service and basic IT are holding them back.

The survey of 14,500 member businesses in Yorkshire and Humber - part of a national survey of 195,000 enterprises - also found 56 per cent of small firms were victims of at least one crime in the past year.

The region has the highest volume of crimes per business in the UK - 65 per cent - which is reported to the police.

Businesses believe an increased police presence, speedier response times and tougher sentencing are more likely to make an impact on crime against business than local crime prevention measures.

On red tape, 58 per cent report an increase in time spent on regulation, 57 per cent are unhappy about the complexity of legislation, either because of the volume of regulations or the cost of complying.

Financial services and hospitality are the business sectors most dissatisfied with red tape.

Other findings show Yorkshire and Humber has:

The second lowest number of businesses where women are either whole or majority owners - only nine per cent compared with a UK average of 11 per cent

The worst record in the UK for recycling waste, an average of eight per cent of businesses compared with a UK average of 14 per cent

The highest number of VAT registered small businesses - 81 per cent compared with a UK average of 77 per cent.

Chris Glen, the FSB Yorkshire and Humber policy chairman, said: "Regulation, both its volume and complexity, crime and a poorly-skilled workforce are problems which we have raised many times before.

"It is worrying that they remain the key barriers to growth for small businesses, as it demonstrates that action taken so far has been inadequate.

"These issues need to be addressed because the economic well-being of the country depends on the success of small enterprises. A total of 97 per cent of businesses have fewer than 20 employees and small and medium sized enterprises make up more than 50 per cent of the private sector workforce.

"We will therefore call on the Government in our discussions to do more to lift these barriers and open up the way for small businesses to prosper."

Updated: 10:03 Friday, May 05, 2006