A quarter of small business have seen their growth crippled by local objections over the past two years, research claims.

As many as 68 per cent of small and medium sized enterprises said they have faced opposition from local communities when trying to grow their business or begin new projects in the past, according to research from business advisory firm Xeinadin.

This opposition often comes in the form of objections to projects such as warehouses or manufacturing plants on the basis of traffic, pollution or property price concerns.

Local opposition is a greater problem in London and the North, with 32 per cent of London-based SMEs having faced opposition almost every time they have tried to expand over the past two years.

Meanwhile in the North East, 33 per cent have faced opposition, as well as 37 per cent in Yorkshire. 

In Northern Ireland, a staggering 43 per cent of business have faced local opposition against almost every expansion in the past two years.

This compares to just 14 per cent of SMEs in the South West, and 17 per cent in the South East.

Businesses in the consumer goods industry have been the worst affected, with 45 per cent having encountered local opposition most or every time they look to expand their operation, while 37 per cent of firms in the food and drink industry have faced similar.

A third of financial SMEs have experienced similar, while 36 per cent or consulting firms have also been stifled.

Tim Halford, chief commercial officer at Xeinadin, said: 'Nimbyism has been the scourge of SME growth for years. The needs of small business owners have been pushed to the bottom of the pile for years, so it is welcome news to see Rachel Reeves pledge to fight the nimbys as one of her first acts as Chancellor.'

Halford added: 'Xeinadin's recent findings show that one in four SMEs have faced growth challenges due to nimbyism in the past two years.

'To address this, the new Government must prioritise reducing bureaucratic hurdles and fostering a more supportive environment for SME projects. Streamlining the planning process, offering clearer guidance and ensuring local authorities work collaboratively with businesses are crucial steps.'

The issues facing expanding SMEs come as figures from Virgin StartUp show half of company owners are worried that their businesses will not survive the next 12 months, rising from 11 per cent in November last year.

Just 45 per cent said they think their business will be in a better financial position in six months' time.

Despite this, Andy Fishburn, managing director at Virgin StartUp, said: 'It's not all doom and gloom. Nearly three-quarters of business founders responding to the study said they are looking to expand in the next six months.'

In fact, according to data from Virgin StartUp, the biggest challenges currently facing businesses are obtaining certificates of license, the risk of another recession and tax rates.

However, for Paul Miller, the owner of Ashley Garage in Wiltshire, local opposition has proved the main hurdle to the expansion of his business when he decided to repurpose a five-acre field at the rear of his property as a solar farm.

The field was unproductive for most forms of agriculture, he said, and has previously been used for hay.

Miller told This is Money: 'Initially, we agreed to invest £21,000 in planning applications and specialist reports. These all came in favourable to the project but at a hefty price, with costs ballooning to £44,000 at the time of submission.

However, when he submitted a planning application, Miller was met with responses from 18 interested parties, 14 of which requested further reports, which he expects would have cost thousands of pounds to complete.

Only the Climate Team, Fire Safety and Rights of Way had no objection for the proposal. Even then, Rights of Way requested a £2,100 contribution for footpath gates.

The local parish council said it strongly objected to the proposal due to a lack of community benefit, as well as impacts on Green Belt and nearby listed buildings.

Miller told This is Money: 'As we had already spent a considerable sum on this project and we felt there was no real prospect of it ever being approved I decided not to continue.

'This was a shame. The project would have made a small but local and direct contribution to reducing climate change, without any significant drawbacks. Wildlife would be unaffected and no views would be harmed except those from (mainly fossil fuel powered) vehicles being driven along the main road past the garage. And a line of trees could easily remedy that.

'In the light of the opposition from so many people bent on prioritising their particular parochial issues over and above the global imperative, I now realise it was probably doomed from the start.'