Three-quarters of small companies think the government could do more to help them, according to a study to mark the start of National Small Business Week.

The report by BT Business found that most small firms wanted to see a cut in the amount of red tape and taxes. Almost one in three said they needed more support on how to run their companies.

The competitiveness minister Stephen Timms admitted the UK still lagged behind the US in terms of fostering an entrepreneurial culture but said there were 8,000 more small firms today than a decade ago.