A body which represents small businesses called for the resignation of enterprise tsar Sir Alan Sugar, following controversial remarks about small businesses.

The Apprentice star dismissed bosses of struggling small businesses as ‘moaners’ who ‘live in Disney World’, during his address to a conference in Manchester.

Lord Sugar, who was appointed to his government post earlier this year, claimed just 15% of companies which were refused bank loans had reason to complain.

His comments will embarrass ministers who have urged banks to loosen their purse strings and lend more to smaller firms.

The plain-speaking Amstrad founder said: “I can honestly say a lot of problems you hear from people who are moaning are from companies I wouldn't lend a penny to.

“They are bust. The moaners are bust. They are bust and they don't need the bank — they need an insolvency practitioner.”

He said young entrepreneurs had unreasonable expectations: “Let me tell you, you lived in the Disney World — you have lived in the unrealistic Disney World in the way banks dished out money.”

John Wright, chairman of the Federation of Small Businesses, said the organisation was |‘extremely disappointed’ by Lord Sugar’s remarks

“Lord Sugar appears to have let his TV personality from The Apprentice take over and the language he has used to describe this country’s small business owners is hardly appropriate given his |current role.

“Members of the FSB have been in touch to complain about Lord Sugar’s recent performances around the country and we have to call that he resign from his position.”