The UK has a long tradition of enterprise. But how can we make it easier still for people all across society to be entrepreneurial? How can the government help those starting businesses? With an election looming, Director asks leading wealth creators what they want from an Enterprise Manifesto

With the global financial crash in 2008 and the subsequent bank bailout, a decade of economic growth in the UK came to a halt. Much of that growth had come from financial services and the public sector. For connected—but separate—reasons, both are now under greater pressure than ever. Neither financial services or the public sector will be the best places to look for future growth.

In fact, it's not clear where the desired economic expansion will come from. But the enterprise economy has a major role to play. Regardless of the sector they're in, entrepreneurs and the businesses they start will play a bigger part than ever in the UK economy.

All of the three main political parties claim to want to make the UK the best place in the world to set up a business. But what do entrepreneurs themselves want? What do they think would make expanding their business easier? And what would make those considering starting a business take the leap?

With a general election on the horizon, Director, in association with Enterprise UK, has decided that now is the time to find out exactly what entrepreneurs want from a government. What can be done to make sure the UK remains one of the best countries in the world for enterprise? And what policies will help to boost entrepreneurial behaviour across the country?

We've asked a group of leading entrepreneurs to put forward their own ideas and requests to the government. There's also a roundtable discussion exploring some of these issues in greater depth.

This is just the start of a consultation process that we'd like you to get involved in and that will eventually result in a set of policy recommendations under the heading of the Enterprise Manifesto. With online debate and voting on suggestions, the idea is to produce some proposals that will be handed to whoever forms the government after the next general election. To make a difference and have your say visit www.director.co.uk/manifesto.

How the main parties shape up for business

Labour

In their own words
"Supporting businesses so they come through the downturn stronger is integral for our future economic success. Working with banks, Labour is providing loan guarantees to businesses to help them get the credit they need. And to ease pressure on businesses up and down the country, we are allowing them to defer their tax payments on a timetable that they can afford.

"The government's vision is to make the UK the most enterprising economy in the world and the best place to start and grow a business. BIS (the Department for Business Innovation & Skills) is working closely with business groups to support them at this challenging time. Help for business is provided through Business Link. Businesses seeking to access the available help and support should contact their local
Business Link."

Current commitments
• Labour has pledged to extend loan guarantee schemes, including the establishment of a National Investment Corporation.
• A 50 per cent top rate of tax for those earning above £150,000 and an increase in national insurance contributions.
• The Small Business Finance Forum, which brings together banks and business representative bodies and is proving to be a useful mechanism.
• The trade credit insurance top-up scheme, which provides temporary support for suppliers that have not been paid, in cases where insurers have reduced but not withdrawn support.
• The prompt payment code and tax relief on capital investments, which both help cashflow. Revenue & Customs' time to pay scheme has also been beneficial.

Conservatives

In their own words
"Our goal is to make Britain the easiest and the best place in the world to set up and grow a business. Labour has failed to deliver real help to business during the recession. It failed to deliver on promises to ease the burden of red tape, especially on small and medium-sized firms. We recognise the huge contribution business makes to society and that's why we want to make Britain open for business again. By ensuring government and business work together, rather than micro-managing from the top down, we will achieve far more for society than Labour has ever done."

Current commitments
• A bold and simple national loans guarantee scheme to get credit flowing again and protect jobs.
• Abolishing tax on jobs created by new businesses within the first two years of a Conservative government.
• Reducing the burden of regulation, and introducing regulatory budgets and sunset clauses to give businesses more freedom and greater flexibility.
• Cutting the main rate of corporation tax.
• Reducing the small companies' corporation tax rate.
• Making Britain Europe's leading hi-tech exporter, with the help of Sir James Dyson's task force.
• Simplifying employment law to make it easier to hire people.
• Improving skills training and apprenticeships.
• Reforming the regional development agencies to create a vibrant, business-focused force that is more responsive to local needs.
• Strengthening UK Trade & Investment to give British business a powerful voice abroad.
• Increasing government procurement from small firms and improving prompt payment.

Liberal Democrats

In their own words
"Our vision is simple—we want Britain to be the location of choice for business. Under Labour, businesses have become increasingly burdened by taxes and red tape. The government has failed small and medium-sized businesses in its response to the recession, and it is showing no leadership on how to improve Britain's long-term competitiveness. Liberal Democrats have a clear strategy to ensure that Britain emerges as one of the most vibrant and dynamic economies in the world."

Current commitments
• Cut the rate of corporation tax—a move funded through the removal of complex reliefs.
• Reduce red tape to ease the burden on smaller businesses.
• Cut business rates for smaller firms and base rates on site values rather than total rental value, which penalises businesses that invest in improving their premises.
• Allow small companies to choose to be taxed on cashflow. This would aid growing businesses that make accounting profits but reinvest their cashflow.
• Make it easier to contract with government so that smaller firms are not disadvantaged.
• Reform R&D tax credits to ensure resources are targeted to encourage innovation.
• Encourage the creation of local enterprise funds to connect private investors with entrepreneurs.
• Reform regional development agencies to devolve power to local authorities and focus support on where it is most needed.

Tom Bewick, chief executive, Enterprise UK, explains why entrepreneurs' ideas will be central to the Enterprise Manifesto

Entrepreneurs are people who have great ideas and make them happen. The result of their spark, energy and collaboration is the lifeblood of our economy. They innovate, create jobs and generate wealth, so we can afford to invest in public services. Today we're asking entrepreneurs to come up with new ideas to support entrepreneurship in the UK, because we know that they're best placed to do so.

We're looking for practical suggestions that could be introduced by any government, or ideas that could be taken up by businesses, universities, schools, charities and individuals. Entrepreneurs from all walks of life and every corner of the UK are being asked to submit, rate and comment on the ideas that matter to them most. We want to know how the UK can better promote and support entrepreneurship.

With Director and our founder business organisations—the IoD, FSB, CBI and the BCC—Enterprise UK is convening this manifesto to ask entrepreneurs to unite on issues that affect them, to deliver a better environment for business in the UK as well as shape the future of entrepreneurship.

What we want from government... Entrepreneurs reveal what's on their wish list

Sir Stelios Haji-Ioannou, founder, easyGroup
"Whoever wins the next election needs to think about the future. We are going through some tough times but we need to remember the next generation of entrepreneurs. So my advice would be to give young people the education to inspire them to seek a career as an entrepreneur. The real new jobs that will get the economy going are created by myriad entrepreneurially owned and run SMEs, not big business. It isn't going to be easy, whoever is in power."

Simon Calver, chief executive, Lovefilm
"The UK continues to innovate in business and build successful models that compete across Europe. But the challenge for us is not getting the ideas but getting the funding to realise the full commercial potential of these ideas. Lovefilm required both VC funding and debt to become one of Europe's fastest-growing entertainment brands. Policy changes with the banks, continued and improved credits on capital expenditure and a reintroduction of capital gains taper relief to incentivise risk-taking are all needed."

Joe Kennard, managing director, Purple Media
"The government should focus on training and educational support. My company has experienced rapid growth since it launched, but I've found it very hard to find coaching and mentoring support to help me manage the development of the business. A stronger emphasis on educating business skills in schools is critical: from the basics of financial management to opening up young people's eyes to the possibilities entrepreneurship offers them as a career choice. We must also address the failure of the education system to provide companies with young people who are ready for the working world. It's hard to find college- or university-leavers with the communications and technical skills required, especially in the creative field."

Sahar Hashemi, founder, Skinny Candy
"The government should provide oxygen for new businesses, not strangle them. It should reduce corporation tax for small firms, give tax breaks for start-ups and reduce national insurance, so they can afford to hire people. Entrepreneurs stake so much on their new businesses, all the government can do is not get in the way by suffocating their working capital through over-taxing them. Where possible it should provide gentle nudges, such as giving tax incentives for hiring people."

Jo Owen, author and entrepreneur
"Make it easy to hire and fire staff. Remove the fear of litigation and reduce regulation. The more rights government give to staff, the more firms fear hiring staff. Each new hire becomes a litigation risk and a regulatory burden. Capitalism needs a flexible workforce; regulation prevents it. Entrepreneurs will deliver jobs, taxes and prosperity if government delivers the rule of law (contract and competition law) and then gets out of the way."

Peter Jones, entrepreneur and star of Dragons' Den
"As chair of Enterprise UK and founder of the National Enterprise Academy, I passionately believe that we need to create more entrepreneurial attitudes and skills in the UK. I would like to see every school in the UK have an entrepreneur in residence. Young people aren't aware of the many entrepreneurs who live around them and what a great opportunity there is to become an entrepreneur. If we can get more young people exposed to entrepreneurship, we'll create an innovative and powerful economy for the future.

These tough economic times call for policies that are practical, cheap and easy to implement. It calls for individuals to stop asking and start doing, to stop bashing political parties and start taking control. If you've got an idea that you think is better than mine, put it up there. Let's start making things happen."