England’s Regional Development Agencies must encourage enterprise among small regional businesses, according to research.

A survey by the Institute of Directors business group revealed RDAs did not communicate properly with businesses in their locality.

Less than a third of companies understand the role of RDAs and have collaborated on mutually beneficial projects.

Only 8% felt their local RDA knew their business needs, according to the poll of 500 IoD members.

IoD business policy advisor Mike Harris said: “Many of our regional offices have excellent relations with their respective RDAs and have collaborated on a range of very beneficial projects.

"However, it remains apparent from our survey that the agencies are yet to make much impression on most businesses at a grassroots level."