Henry Digby (34) opened the Oggton Cycle Shop at the Forge Garage last year after operating it from nearby Davison's Farm.

In his shop, he launched his Ogg mudguard which has unique reflective technology to increase its visibility. He also serviced bikes, sold spare parts and cycle equipment and joined a government cycle to work scheme that enables buyers to get a bike with as much as 50% off the price.

In addition to the cycle side of his shop, he also sold groceries, copies of the Whitby Gazette and aimed at setting up a tea room.

It means the nearest shops selling groceries and general goods now are in Grosmont and Glaisdale with only an infrequent bus service to them, making it difficult for people without their own transport to get to them.

Henry said: "I needed a loan to take my shop to the next level but the bank said I was in a high risk business although my turnover was £35,000 in the first year.

"Without a loan I couldn't keep going although the owner of the shop premises, James Godbold, was very kind and helpful and I'm grateful to him. I'm sad to leave the shop – I definitely think there's a place for small shops in villages but word got about in the village that I was going to close down and that didn't help.

"But I'm not giving up. In the New Year I hope to get a van and go mobile with the business, touring round the villages to repair bikes and sell accessories."

In the meantime, Henry is working from his home and is also trying to get a manufacturer interested in his mudguards.