An independent review commissioned by the Tory party into the UK’s enterprise environment has proposed that a national system similar to the TV show Dragons’ Den should be introduced to boost entrepreneurialism in the UK.
It proposes improving financing for growing businesses by making it easier for people or businesses to invest as syndicates. It also recommends setting up a virtual marketplace for unlisted investment opportunities.
The review, undertaken by the European School of Management, proposes a simpler tax system with lower corporation rates, more incentives for reinvestment into new business, mentoring schemes for young entrepreneurs and more focus on business skills in schools.
According to the review’s findings new companies are increasingly struggling to grow in size. The percentage of businesses that achieve an annual turnover above £1m five years after creation has decreased from 48 per cent in 1997 to 16 per cent in 2006. New business owners say tax and regulation are the two biggest burdens preventing the growth of their businesses.
Shadow Chancellor George Osborne said today that he commissioned the review to find out why entrepreneurs were struggling to create jobs and build businesses and determine how these problems could be fixed.
He says: “What it has exposed is the damage done by Labour’s economic incompetence that leaves us less well prepared for the big economic challenges. These recommendations provide a blueprint for making Britain the enterprise capital of the world with simpler taxes, lower tax rates, less regulation and a generation of young people with the skills they need to start their own business.”