Why new business is important!

I came across this article by Tim Worstall about why it is important that more new businesses need to be started to really help us out of this recession. Whilst I agree with most of what Tim says I disagree with his solution.

As Tim says "we should turn our attention not to the old and large companies, but to the small and new. Yes I agree.

But Tim then goes on " The thousands upon thousands of regulations and laws that state that you may do this, you must fill out that form, you may not do that, do not proceed without authorisation.

Get rid of that and we'll have more small firms created, more expanding, and thus a lower rate of unemployment. All at no cost: you see, sometimes, there really are free lunches."

I don't believe that bureacracy and regulations stops most entrepreneurs, as they are resourceful enough to get round this.

I am sure there are many factors contributing to why new businesses are not being created and whilst bureacracy may be one of them, I think a major factor is the fear that the media creates is stopping more entrepreneurs from starting up alone. Couple that with the cautious lending of the banks these days as Entrepreneurs by their very nature are not "safe" investments.

If the UK as a whole including government, businesses and individuals can find ways of supporting new businesses only then will we start to see unemployment decreasing.

It would be great to see our industry news full of new business startups and expansions rather than the gloomy news of closures and administrations.