Bradford's small businesses are out-performing their European competitors, a new report says.

The study by the Department of Trade and Industry measured the performances of small businesses across nine European countries.

It found British firms topped the league, scoring the highest marks in 20 out of 70 categories.

British businesses also emerged as having the highest pre-tax profit margin of all the nine countries measured. The report found UK manufacturers were least likely to go bust, because they had enough liquid assets to cover their liabilities if creditors called in their debts.

But, the UK service sector fared less well, with firms in this area considered to be the most likely in Europe to run into problems.

Nigel Griffiths, small business minister, said: "I want to give our millions of small businesses the competitive advantage in Europe. This report gives them a unique opportunity to do that by comparing themselves to their competitors."