Business leaders shun government enterprise reforms

Entrepreneurs sceptical of business bank and employment rights initiatives

Over 300 entrepreneurs have voiced reservations over key government initiatives designed to help enterprise, with many seeing the reforms as misguided.

A poll taken of attendees at a meeting of entrepreneur network E2Exchange found widespread apathy over the recent introduction of the business bank initiative.

 

85% of those surveyed said that the scheme would not achieve its stated aim of boosting overall lending to small firms, with lack of financial firepower and seed capital cited as the main reasons.

In addition, 90% said that the government’s measure to allow employees to exchange employment rights for equity in their company would be ineffective in helping their business. Cobra Beer founder Lord Karan Bilimoria was particularly critical of the planned reforms, describing them as “totally wrong”.

The poll, which was part of a debate aimed at how best to equip small firms to lead the UK’s economic recovery, also found that a majority of entrepreneurs at the event were in favour of the government reducing National Insurance as opposed to further cuts in income or corporation tax.

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