Mr Pedder, chairman of engineering company Sheffield Forgemasters International, has more than 30 years' experience with British Steel/Corus plc and holds a number of non executive directorships.
Helen West, chief executive officer of Business Link Yorkshire, said: "We have three critical goals – to help more businesses grow and develop through using our services, to win and retain the support of our many partners in the region and ensure the quality of information and support to businesses.
"Tony's breadth of experience in all these areas means he brings credibility, expertise and local knowledge to our board."
Mr Pedder is chairman of Sheffield NHS Primary Care Trust and deputy chairman of regeneration company Renaissance South Yorkshire Ltd. Last year he was appointed a deputy lieutenant of South Yorkshire.
He said: "I see my new role as a fantastic and exciting challenge to help achieve the greatest possible success for the region's entrepreneurial businesses.
"My own broad business background means I will bring different approaches and skills to complement the great work being done by Helen and her team."
Business Link Yorkshire is a central point of free information and advice for all businesses in the region, no matter what their size or stage of development.
Its free events programmes, on a range of inspirational and practical topics, are run in towns and cities throughout Yorkshire and Humber.