Angel's plea to give start-ups a break

Mr Richard, who was made famous by his appearances on TV's Dragons'

Den, said the government should stop wasting 2.5bn a year on ill-conceived business support programmes and instead "make an economic framework for entrepreneurs".

Mr Richard was main speaker at the Sheffield Chamber's annual dinner at the Cutlers' Hall, which was attended by more than 350 people including business leaders, MPs and dignitaries.

He said: "We must raise the burden and lift the regulatory regime from small businesses."

Nick Tovey, the chamber president, told the audience he is seeing signs of improvement in some areas of South Yorkshire's manufacturing base and said the emerging healthcare technologies and sports industry sectors could help the region compete on an international level.

"There is light shining through the gloom," Mr Tovey, a director at Wardell Armstrong, said.

"It might not be a piercing light at the moment, but as a mining engineer there is light at the end of the tunnel."

The chamber has suffered financial difficulties in recent months, blaming the recession and government policy on business support, and put staff on part-time working.

Mr Tovey said: "I want to stress that our priority continues to be the best interests of you, our members."