A BUSINESS leader has called on the Government to help create a country "fit for entrepreneurs" to improve the chances of economic recovery.

John Walker, chairman of the Federation of Small Businesses (FSB), said next week’s Budget should concentrate on helping smaller firms fuel growth and create jobs.

He told the FSB’s annual conference in Liverpool: "2010 was a tough year, and 2011 looks like it’s going to be much of the same as the public sector cuts begin to bite, unemployment remains high, and GDP contracts.

"The UK’s 4.8 million small businesses are best placed to help the recovery, but they need a helping hand.

"We need to see the Chancellor use the Budget to create a country fit for entrepreneurs by providing incentives for businesses to take on staff and for self-employment to become a viable choice for the unemployed."

Mr Walker said the Chancellor should extend the National Insurance contributions holiday and introduce a fuel duty stabiliser to help firms’ cash flow.

Giving a pre-recorded video address to the conference, Prime Minister David Cameron pledged next week’s budget would be the "most pro-growth budget this country has seen for a generation".

"I want Britain to be the best possible place to set up and run a business," he told around 750 delegates.

"We’re going to clear the obstacles out of the way of enterprise.

"That’s why we are scrapping all that needless red tape, we’re cutting corporation tax to 24% - the lowest in the G7, we’re reducing the small profits rate from the beginning of next month and we are creating the most competitive corporate tax regime in the G20."

The Prime Minister added: "Our budget next week will tear down the barriers to enterprise and I believe will be the most pro-growth budget this country has seen for a generation.

"It will include an investment of at least £100 million for the creation of new enterprise zones, helping to rebalance our economy by targeting parts of Britain that have missed out over the last 10 years.

"In these areas of high growth potential, we will cut taxes harder and make planning even simpler to attract new businesses and create new jobs.

"An enterprise government is an active government, using its power and its clout to open up new opportunities for businesses."