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A sharp decline in established businesses is threatening jobs and growth across Yorkshire and the Humber.
According to a report from Allica Bank, the number of established SMEs — firms with between five and 250 employees — has fallen by 2.9 per cent since 2023.
These businesses support 34 per cent of private sector employment in the region.
Conrad Ford, chief strategy officer at Allica Bank, said: "Established businesses are the engine of Yorkshire and the Humber economy.
"They support careers, create apprenticeships, and provide vital services to their local communities.
"That’s why the fall in their numbers should matter.
"When places like North East Lincolnshire and Sheffield lose established businesses, they risk losing employers that have often supported local communities for years."
The decline is even more pronounced in certain areas, with North East Lincolnshire seeing a 7.3 per cent drop, Sheffield down by 6.2 per cent, and Kingston upon Hull by 5.3 per cent.
This trend contrasts sharply with London, where the established SME population grew by 5 per cent over the same period.
Despite the decline, some businesses continue to show strong growth.
Nearly 1,000 established SMEs in Yorkshire and the Humber increased their turnover by at least 20 per cent over the past year.
Mr Ford said: "We believe that when established SMEs grow, the whole economy grows with them.
"If the Government wants to deliver good growth in every postcode, these businesses need to be much more visible in economic policy.
"Giving local leaders the tools to understand and support established SMEs would be an important step in this process."
Allica Bank is calling for more targeted support, including regional eSME Growth Forums and greater devolution of skills funding, to help sustain and grow this vital segment of the economy.