THE UK would have almost a million additional businesses if it set up firms at the same rate as Americans, Lord Young has claimed in a government-commissioned report.
Despite the UK having the lowest barriers to setting up a firm in the whole OECD, it does not have the highest rate of entrepreneurship.
“It is estimated that if the UK had the same rate of entrepreneurship as the US, there would be approximately 900,000 additional businesses in the UK,” he said.
The report found that 48 per cent of firms set up by those aged over 50 were likely to succeed after five years compared with just 29 per cent of those started by people aged 18 to 49 years old, due to factors such as experience and contacts.
As a result, young entrepreneurs are to receive extra business support from the state, under the StartUp Loan scheme which is also being launched today to offer £80m in credit to new firms.