The Happy Hutch, based in Hull, was started in 1999 by Graham Barnard when he came off the dole to start making rabbit hutches for a friend. The firm now employs six full-time and five part-time staff.

He said:

"From a chance meeting with a pal from school and with nothing but a small shed in the back garden, we now have a 10,000 square foot factory, machinery I used to dream about, and a business everyone told me I would never get off the ground.

"It has taken five hard years to get this far. It was very hard to find anyone to help or back me but I had two things you must have - self belief and a family that helps and backs me all the way. I have never done this thinking I would get rich - I do it because I love it."

The winning firm scooped a trophy, £5,000 to donate to charity and a year's worth of advertising in a business magazine.

To read more details and see the full list of winners, go to the FSB website.