But failing to take people on and expand their businesses could be putting entrepreneurs at risk of going bust.

Stephen Alambritis from the Federation of Small Businesses (FSB) told This Is Money:

"A greater percentage of businesses are determined not to employ staff due to employment law, but that is preventing them from expanding and makes it more likely that they will close down."

PR consultant Caroline Lashley runs The Editor's Office - but doesn't have any employees. She reckons red tape "is not conducive to entrepreneurship".

She said:

"When I set up the business in 2003, I thought about taking on staff but the rush of legislation in recent years has made me think twice.

"Instead, I have a network of other entrepreneurs and use them on a consultancy basis or barter skills when I need specific jobs done."