Birmingham firm Hydrapower Dynamics was named as Business Innovator of The Year in the Variety Club awards.
The firm, based in St Marks Street, was said by judges to be a "fine example of a company that has adapted itself to meet the high-end technical requirements of automotive producers".
Hydrapower has developed a method of replacing metal pipes with shaped nylon tube, eliminating failures created by vibration and cracking while also reducing engine weight.
Negotiations with major engine manufacturers are currently taking place and orders have already been placed by Land Rover and TVR. Sales are expected to reach £8 million within five years.
The Small Business Of The Year award went to Twycross Zoo, based at Atherstone in Warwickshire.
Judges said that the zoo - while not an obvious example of a small firm - had displayed "every element" required by a successful business.
Led by a small but dedicated team, Twycross was said to have an absolute understanding of its market, which had resulted in year-on-year increases in visitor numbers to pass the half million mark.
Judges also said that the managers at Twycross had established a long-term vision which would result in the zoo as being recognised as one of the world's fore-most animal sanctuaries.
The Variety Club's Working In The community award went to Birmingham-based Severn Trent Water.
Judges were impressed by the company's "bottom to top commitment to the local community, involving staff throughout the organisation".