This study aims to understand local food and explore the barriers to development for small innovative food businesses. Research was conducted through depth interviews and a survey in North‐West England. Results indicate that small business success can be subjective and performance dependent on business aims. Identified were issues concerning access to finance, burden of regulations and the need for support from industry networks and government. Lack of an official and recognised definition of the term “local food” had implications for marketing strategy. Small businesses recognise that customers are increasingly concerned with food provenance and traceability, but that they and their representative associations need to do more to make these links.