Parts of the economy dominated by small and medium sized businesses have falling behind others, with slower growth and proportionally smaller contributions to UK GDP.

That’s the main finding from research released today by alternative lender Boost Capital. The contribution to the economy of key sectors including retail, construction and hospitality has slowed faster than others between 2007 and 2013, it said.

At the same time, according to Boost’s figures, lending to SMEs contracted by £2.6 billion, or six per cent of the total. It backs up government data showing that smaller firms are more likely to be rejected for basic finance facilities such as overdrafts and loans.

Marc Glazer, CEO of Boost Capital, said: “The real contribution and value to the nation’s economy from SMEs should never be understated. Big sectors dominated by SMEs like hospitality and construction have shown comparatively lower growth than other sectors.

“If funding for these businesses continues to be constrained, their growth and ultimate contribution to Britain’s bottom line may fall far below its potential. From what we have seen on the ground SMEs are still not being given the financial footpaths to grow.”