Britain can unlock a new generation of entrepreneurs and inspire growth among small businesses with major reforms to tax, regulations and lending. Too many small British businesses are unable to grow, leaving the country reliant on 1% of businesses for over 11% of its productivity.

The British Entrepreneur argues that a lethal combination of high costs, poor access to finance, harsh economic conditions, a uniquely high fear of failure, and excessive red tape are holding back entrepreneurial Britain.

But these challenges affect groups of current and aspiring entrepreneurs in different ways. Using polling from JL Partners, the report identifies a pipeline of entrepreneurial talent, grouping the general public based on their likelihood of starting a business, and entrepreneurs based on their growth aspirations.

Within the general population, those “on the bench” (71% of the population) are unlikely to be persuaded to become entrepreneurs, while those “on the fence” (18% of the population) and “on the brink” (11% of the population) are much more open to take risks — but are all fearful of the consequences of setting up their businesses.

Among entrepreneurs, there are the “sole operators” (those least interested in growing their businesses), “contemplators” (those wanting to grow their businesses but concerned about profitability), “growers” (those already growing businesses but worried about costs) and “executives” (those leading businesses already at their maximum potential).

The report argues that those on the brink, the contemplators and growers must be the main targets of policies that encourage business ownership and growth.