Entrepreneurs held back by red tape and tax, report finds

Britain's fast growth entrepreneurs are younger and better educated than managers of slow growth firms, but are finding Government interference hard to cope with, according to a survey by Barclays.

The report: 'Fast Growth Firms - Raising the Bar' examines Britain's incorporated companies that enjoy annual sales or profit growth of at least 25 per cent and set new standards that drive innovation and fresh ideas in the economy.

'Raising the Bar' examined entrepreneurs' characteristics and the experiences and challenges they face.

'Reducing red tape' and 'cutting the burden of taxes on business' took top place when young entrepreneurs were asked what the Government could do to help them succeed.

'Keeping up to date with technology,' 'accessing new markets' and 'collecting payment' were also listed as key problems they have to overcome.

Other key findings from the report included:

• London and the South East have the highest proportion of fast growth businesses, but hotspots exist as far afield as Durham, Leeds, Bristol and Cambridge;
• Twice as many business owners or senior managers in fast growth businesses are from ethnic minority backgrounds, with those of Asian origin particularly prominent;
• Owners or managers of fast growth firms see management experience as the single most important factor for business success. They are also more likely to have a professional background and to recruit specialist managers in areas like finance, marketing and HR.

Mike Rogers, Managing Director of Small Business and Start-ups at Barclays, said: "Fast growth businesses, regardless of their size, are the vehicle for Britain's elite group of high octane entrepreneurs. Like the leading Formula One teams they combine effort and determination with professionalism and a focus on their goals. Similarly, they believe that bringing in the best specialist staff and harnessing technology can give them competitive edge over their rivals.

"All businesses that thrive and create jobs are valuable, but a healthy stock of fast growth businesses is an integral part of a dynamic economy. These firms are focused, ambitious and groundbreaking, combining big aspirations with the expertise and ability to achieve their goals."

George Cox, Director General of the Institute of Directors, said: "This research really confirms our faith in the whole entrepreneurial sector. Without the innovation entrepreneurs bring to business, nothing we value in society works. Business must constantly develop new ideas; new products; and new ways of working, to create the jobs and the wealth to pay for our education system; our health system; and our pensions."