BRITAIN has some of the best performing small businesses in Europe, according to a Trade and Industry report.

The study, which measured the performances of small businesses across nine European countries, found that British firms topped the league, scoring the highest marks in 20 out of 70 categories.

British businesses emerged as having the highest pre-tax profit margin of all nine countries, while manufacturers in this country were found to be 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 because they did not have sufficient assets to cover their liabilities if their debts were called in.

German companies emerged as having the highest number of complaints, while British ones had the least, while German employees took the most sick days.