The UK is failing to support entrepreneurs and growing businesses, according to a

survey by accountants BDO Stoy Hayward.

The research found UK entrepreneurs felt they had less support than counterparts in other world economies, both from a governmental and cultural point of view.

Forty-eight per cent of owner-managers voted the UK the worst business environment, behind the United States.

Twenty-six per cent believed this had worsened since Labour came to power.

Issues highlighted included attitudes towards failure and the class system.

But it was the legislative and regulatory environment that troubled entrepreneurs most. More than three quarters said it was the biggest obstacle to enterprise, with 78 per cent believing the Government should stop "tinkering at the edges of business reform" in the next Budget and opt for fundamental changes.

Adam Frais, tax partner at BDO, said: "The findings show in difficult economic conditions, entrepreneurs will be looking for budgetary measures which demonstrate the government's recognition of the challenges they face.

"A major concern is without the support of government, talented entrepreneurs will be tempted to take their talents outside the UK."