Whitehall is overbearing and bureaucratic according to entrepreneurs

by James Agate

According to a survey of some of Britain’s most influential entrepreneurs, many regard Whitehall as overbearing and bureaucratic and lacking the initiatives to help wealth-creators drive growth in the economy.

The survey, conducted by Entrepreneur Country found that more than two thirds of those entrepreneurs surveyed called for steps including the eradication of PAYE and NI contributions for start-ups in their first two years of trading. Almost 80% backed a review of Entrepreneurs Relief on Capital Gains Tax to encourage greater investment in smaller businesses; and 86% said a reduction in Government regulation of small business was ‘critical’.

The survey also painted a picture of entrepreneurs viewing central Government as bloated. When asked how they would improve the environment for business, the most popular response (40%) was to reduce the size of Government. 70% of entrepreneurs also called for a more streamlined system of support for start-ups with one central place to apply for every available Government grant.

Of the 174 businesses surveyed, more than 70% said their confidence would be improved by a Conservative Government, while 63% said they would lack confidence with a re-elected Labour Government.

The poll was conducted through December by Entrepreneur Country, a community led by Julie Meyer (from Dragons’ Den Online) of entrepreneurs and investors. It found that most high growth businesses feel that a combination of taxes, lack of incentives and tax relief, and bureaucracy, have combined to stifle the hopes of entrepreneurs.

Julie Meyer says: “The 2010 elections are crucial for our future economy. We need to see more recognition of, and help for, the UK’s entrepreneurs. Statistical evidence suggests that a vital 6% of high-growth businesses create a full 54% of all new jobs, so it’s absolutely crucial that entrepreneurs are given as much help as possible”.

NESTA (National Endowment for Science, Technology and the Arts) revealed recently that that just 11,500 or 6% of UK businesses with 10 or more employees are classed as ‘high-growth’ companies. Interestingly this small number of businesses has generated around half, or 54%, of new jobs.

I would say Labour’s time in power is as good as over!