The government's business support services are offering inadequate services that are driving companies away from publicly funded schemes, a pressure group has claimed.
A new report from the Confederation of British Industry (CBI) warns that businesses face a "baffling array of conflicting, confusing and inconsistent quangos, grants and agencies across the UK".
Satisfaction with England's 2,650 schemes is so low, the CBI says, that firms are turning away because they do not trust the quality of service or believe it matches their needs.
Even more simply do not know what help is available to them, the group claims.
According to the report, just one in seven firms uses Business Links, despite being the government's chief business support service and collecting £140m in taxpayer funding each year.
"With UK levels of entrepreneurial activity stalling, and levels rising elsewhere in the world, it is more crucial than ever that government services help to deliver productivity gains for business," said Ian McCafferty, CBI chief economic adviser.
"Quality business support is proven to boost survival and growth prospects so it is essential to enabling an ‘enterprise revolution.’ However, there are too many overlapping, confusing and inconsistent schemes."
The CBI is calling for better cooperation between government and regional support services to work more closely with business.
The group said government should streamline its services to start and improve training for its advisers, particularly those lacking a business background. Many firms are seeking strategic advice, when the regional bodies are offering mostly "nuts-and-bolts help", the report said.
Publicly funded initiatives must also reflect business demand and address failures or gaps in the market, according to the CBI. One such gap, it said, is the lack of a support network for small firms looking to grow.
