Public sector bodies should also be given a new obligation to help new companies grow.

"Britain should become the friendliest nation for start-ups in the world. Instead of fearing competition, we should encourage it,” the group said in a report published today.

To ensure that Britain remains internationally competitiveness, immigration rules should be changed, the report suggests.

Selling visas to companies or individuals would be “less bureaucratic than today’s system, allow the Government to control the flow through price changes and ensure that workers only entered the country if they added significant value to the economy.”

George Freeman MP, the report’s author, said that Britain must become more pro-enterprise to survive in the 21st Century.

“We need to do more to unleash an entrepreneurial ethos both in the public and private sector. This requires bold new thinking like a pro-enterprise immigration policy and a new deal for business,” he said.

“This is how we build a global vision for developing a competitive economy and succeeding in the global race.”

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