A massive 93 per cent of Bradford's small and medium-sized enterprises are not taking advantage of grants available to them.

The figure - from grant search website j4b.co.uk - reveals businesses are unaware of funding sources and unwilling to overcome the red tape to access the funds.

Nick Jaspan, managing director of the free-to-search website, said: "Out of more than £5 billion of grant funding earmarked annually for UK businesses, at least £100 million of grant money goes unclaimed every year because businesses simply don't know how to access it, or are put off by the confusion, complexity and time involved in finding out what is available.

"Most smaller enterprises are already too busy keeping up with all the bureaucracy that surrounds running a business, and rely on bank overdrafts, loans or family savings.

"This is a terrible shame because it is precisely these businesses which many grants are designed to support, and which can often go under through a lack of capital."

Currently there are more than 230 grant schemes available to businesses in Yorkshire and the Humber.

A large proportion of these are aimed at helping businesses that undertake research and development.

Even though it is one of the largest regions in the country, Mr Jaspan says it ranks in the bottom four of all UK regions searching the j4b.co.uk database for information grants.

Businesses who claim grants from the EU, government or local councils still have to find some of the funding themselves, but grants can cover up to 50 per cent of a venture.

Mr Jaspan says one of the biggest sources of funding that SMEs in Bradford are missing out on is grants from the Government-funded SMART initiative, which is operated by the Department of Trade and Industry and administered in the region through the Government Office for Yorkshire and the Humber.

It provides grants to help individuals and SMEs make better use of technology and develop technologically innovative products and processes.

Mr Jaspan said: "The British Chamber of Commerce also operates a range of national schemes on behalf of Trade Partners UK to help businesses seek new markets by part funding market research reports, travel and the development of major overseas projects."

He added: "Although the DTI is planning a welcome reform of its 150 grant schemes to help simplify the process, this will take many months and businesses need help now."