Government is being urged to do more to boost the number of business start-ups if it wants to stop the UK economy shrinking.
The call comes from the Yorkshire Enterprise Club, which says too few new businesses are being set up to make up for the number of companies that are closing.
Club chairman and Sheffield businessman, Gordon Millward, said: “With a 1.9 per cent reduction in the number of businesses operating in the UK, it is hardly surprising that the economy is shrinking.
“Sooner or later it will begin to dawn on ministers that the start-up of new enterprises is the Number 1 challenge facing the government. The shrinking business base is the ‘elephant in the room’ that no-one appears to have noticed.
“The UK’s economic survival depends on the abilities of a new generation of entrepreneurs to turn their ideas into commercial success.”