Markets and politicians are deeply worried that the UK economy is not growing, which means we cannot dig ourselves out of the financial hole we have been in for the past few years. The Treasury has no money to spend, so cannot be the solution. There is only one answer. Somehow the private sector needs to be stimulated to invest in Britain, thus creating jobs and growth.
I have spent the past 25 years founding and backing growing companies. During that time, the state-imposed hurdles and taxes on business have grown dramatically. Meanwhile, the fruits of globalisation mean that in many parts of the economy the competition is far more ferocious than it used to be. We cannot just carry on hoping that recovery will take care of itself. The British are an ingenious people, and benefit from our history, language and location. But those attributes are not sufficient to ensure a revival. More must be done.
I suggest the government borrows an idea proposed by the Kaufmann Foundation, a US think-tank focused on entrepreneurs. We need our own dedicated Start-up Act that would be a real catalyst to the creation of new companies. Research shows that start-ups are the source of most innovation, job creation and growth. So we should pass specific legislation that gives entrepreneurs irresistible reasons to take the plunge.