Research from Investec Specialist Private Bank shows that two thirds (67 per cent) of entrepreneurs plan on increasing the number of people they employ this year, while only eight per cent expect to make job cuts.
But Investec’s Ed Cottrell warns that the new coalition government must provide an attractive environment for entrepreneurs so that they’re encouraged to grow their businesses.
“With a new government formed, severe spending cuts will have to be enforced to help tackle the country’s debts, and this could lead to job losses, especially in the public sector.
“We need to make sure that entrepreneurs, which are the lifeblood of our economy, are properly incentivised to grow their operations and therefore hire more people.”
Currently, only three per cent of entrepreneurs view the overall regulatory and tax environment as attractive to launch a new business in Britain.
Philip Shaw, chief economist at Investec Private Bank, says this needs to improve:
“Entrepreneurs look for an environment that provides them with opportunity, reward and a flexible environment to operate in. They also look for stability and support, be that from the banks or the government – and it’s in the best interests of the economy to provide this to them.”
Meanwhile, at the Real Business / Investec Entrepreneurs’ Summit earlier this week, easyGroup’s Stelios praised the UK for its encouragement of entrepreneurship:
“Second perhaps only to the US, Britain is still one of the most entrepreneurial countries in the world. The UK society and economy, especially in London, is more inclusive and tolerant than any other country in Europe.”