Small firms that have just started up should be allowed to benefit from tax exemptions in the two years of trading, a new report has argued.
The report was produced by the British Library’s Business and IP Centre, and it heralds the launch of Global Entrepreneurship Week.
Other recommendations made by the report include a scheme to help firms fast-track patent ideas, an increase in broadband speeds, a rise in maternity leave subsidies, the setting up of a government-sponsored national internship scheme, and a simplification of the processes by which small firms tender for government contracts.
Former BBC Dragon’s Den member, Doug Richard, who was involved in producing the report, identified tax relief as the most important stimulus to new entrepreneurial activity.
Mr Richard said: “It takes a good 18 months of solid work before a new business starts to really establish itself.
“If the government is serious about encouraging enterprise in the UK, then they need to avoid gimmicks like the VAT cut, and offer start-ups a genuine exemption from tax until they get their businesses up and running.”
