Britain’s entrepreneurial culture is at risk of being stifled by the fear of red tape and failure, a new survey shows.red

Research published today carried out by YouGov for the law firm Dickinson Dees has revealed that 45 per cent of people who have thought about setting up their own business are put off by the legal requirements involved.

Some 29 per cent of 25 to 34 year olds are concerned about a venture failing, which indicates a worrying trend for the future of Britain’s entrepreneurial economy according to Dickinson Dees.

Half of respondents who are considering starting a business felt that more guidance on laws covering employment and tax would be beneficial before they set up on their own.

“It’s no wonder that people are unwilling to start their own business when the regulation introduced by the Government is unclear, confusing and seemingly unending,” Robin Bloom, senior partner with Dickinson Dees said.

“There is a plethora of advisory services available to those looking to start a business, but the current environment is one in which potential entrepreneurs are being put off at the first hurdle.

More needs to be done to discourage the fear of failure and encourage the culture of calculated risk taking,” Mr Bloom added.

Dickinson Dees is calling for red tape to be cut for small and medium-sized enterprises and start-ups in the UK and for wider access to straightforward advice on the main laws and regulations affecting small business.

"Our research is particularly worrying in terms of the high number of young people being too afraid to set up a business. This country cannot afford to lose its competitive edge and entrepreneurial flair because of the reams of red tape and fear of failure suffocating innovation. We must act now, or find ourselves lagging further and further behind those economies which cherish their entrepreneurs.”

The research was conducted by YouGov between August 10 and 14, 2007/ More than 2,000 adults were interviewed. s

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