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BUSINESS NEWS: UK missing out on £580bn enterprise boost. By Dan Martin

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3rd May 2006
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The economy would be boosted by £580 billion if more businesses were started by women, ethnic minorities and people outside London and the South East, the Confederation of British Industry (CBI) claims.

The employers organisation said despite government attempts to increase enterprise among underrepresented groups, they are falling behind the most active entrepreneurs - white men in London and the home counties.

If more females, ethnic minorities and non-Londoners went into business, the CBI said one million new firms would be established generating £580 billion a year.

The report showed London has more businesses than Wales, Scotland and Northern Ireland combined and will have 100,000 more by 2020.

In addition, the percentage of self-employed who are women has fallen from 27.8% in 2000 to 26.7% today with 2,733,000 men working for themselves compared to 998,000 women.

"There is a huge, untapped well of entrepreneurial potential in Britain."

Sir Digby Jones, CBI

The proportion of ethnic minority entrepreneurs is also falling. It dropped from 7.4% in 2000 to 7.0% today and is forecast to fall to 6.2% in 2020.

CBI director general, Sir Digby Jones, said: "There is a huge, untapped well of entrepreneurial potential in Britain which would boost the economy and raise the living standards of millions of people if it could be unlocked.

"Boosting enterprise requires a tax and regulatory regime that supports risk taking.

"There must be proper support for businesses, and, perhaps most importantly, the Government should invest in the transport infrastructure to ensure no region of the UK is left behind."

As well as improving the transport system, the CBI urged ministers to strengthen the provision of technological support, increase access to finance and enhance business support services.

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