Government 'failing small firms'

Stephen Timms points to the rise in number of small firms

Almost three quarters of small businesses say the government could do more to help them, a survey has found.

The study to mark the start of National Small Business Week 2007 said small firms most wanted to see a reduction in regulation and a cut in business taxes.

Competitiveness minister Stephen Timms said there were today 8,000 more small firms in the UK than 10 years ago, but admitted it was still behind the US.

The report by BT Business spoke to 1,650 small firms across the UK.

And it found that 74% of respondents said the government could be doing more to help them.

The same percentage wanted to see a simplification of business regulations, while 70% called for a cut in business-related taxes.

In addition, 32% wanted better advice and support provision.

'Big success'

Speaking at the launch of Small Business Week 2007, Mr Timms said the growth in the number of small businesses in recent years had been "a big success for Britain".

Yet he acknowledged that while the UK had more small firms with four or less employees than the US, America had a better success rate in creating small companies that grew into larger operations.

To help improve small business growth in the UK, Mr Timms said the government was now developing a new enterprise framework of support, aims and ambitions, which will be published in March next year.

The small business sector now accounts for 47% of all private sector employment in the UK, and 37% of turnover.