Interview - Peter Wilkinson: Start-ups 'killed stone dead' by red tape

In a rare interview, Peter Wilkinson blasted the amount of bureaucracy and legislation faced by companies, decried recent attacks on capitalism and tax avoiders by business secretary Vince Cable and criticised investors for focusing on short-term gains.

The veteran internet entrepreneur also warned that the technology industry is in danger of becoming useless through over-complication and urged a drive towards simplification.

Mr Wilkinson told the Yorkshire Post: "I would not want to be an entrepreneur any more. They have killed it stone dead. Red tape in terms of business is impossible. There are very few morals and ethics in business and there is no decency left. Employment law is a nightmare. Accountancy laws are just ridiculous. We are becoming a risk-averse nation. Entrepreneurs by design have to be risk-takers otherwise we would not do anything."

The chief executive of Harrogate-based InTechnology, the managed IT services provider, said he would have pulled out of investments in Mobile Tornado, the mobile communications specialist, and Live PA, the voice recording software developer, had he followed the principles of accountancy.

Mr Wilkinson questioned how many "good, young entrepreneurial businesses... have been choked to death" by banks and claimed the new tax regime set out by the coalition government removes incentives for entrepreneurs.

The 56-year-old businessman amassed a fortune through successful hi-tech ventures over the last three decades and is said by rich list compilers to be worth in the region of 300m.

Referring to Dr Cable's recent speech in which he attacked tax avoiders and repeated his support for a mansion tax, Mr Wilkinson said: "All they are doing is killing the people off who create the wealth. When I go I've created 7,000 jobs and I'm proud of the fact. I'm not proud of the money I have allegedly made. I have created 7,000 jobs."

Just because wealthy people employ clever accountants does not mean they are tax avoiders, he added.

Mr Wilkinson claimed that the perception of Britain has changed overseas. He said: "I don't think we are seen in the world as a go-ahead, entrepreneurial, innovative and hard-working nation."

He said the work ethic of Britons has changed in a "quite frightening" way over the last two decades with people expecting success to "land on a plate" without being prepared to work 14 to 15 hours a day, seven days a week as he had. Meanwhile, many undergraduates in the university system are studying degrees that are "an utter waste of time", he added.

Business people are "looking for unrealistic returns on their money" when companies need time to develop, said Mr Wilkinson; "they want a return too quickly, which puts a strain on the entrepreneur."

Mr Wilkinson, who founded and sold companies such as Storm, VData and Planet Online, said technology has become too complicated.

"The next drive in technology needs to be simplification," he said. "If I didn't own a computer company I would have given up years ago. If we don't go into simplification mode I think technology is going to become superfluous and useless."

He said the rise of texting and social media websites such as Facebook is leading to a breakdown in basic communication skills. "People are losing the art of conversation. If you lose the art of conversation, you lose the art of learning. If you lose the art of learning, you become uninspired people. We are becoming a nation of uninspired people.

"The Chinese and Indians have shown us we are way behind them. We have no manufacturing industry to speak of and the service industry is going to go the same way if we are not careful."

Firm performing well through difficult times

Nearly everything that InTechnology sells saves people money or increases productivity, according to chief executive Peter Wilkinson.

The Harrogate-based business turns over around 50m and employs 200 people. It sells managed IT and communications services in the same way as utilities like gas, electricity and water.

Services include network, data back-up, voice communication, internet access, email or unified communications requirements.

Phil Hambly, the new group marketing director, describes the company's approach as "a simple pay-as-you-grow – or save-as-you-shrink – model that removes the pain of up-front cost and evolves it to a straightforward monthly licence fee".

Mr Wilkinson said the business has performed well through difficult times.

Turnover was down by six per cent last year, reflecting a lost contract, while profitability fell by 20 per cent, he said.

"This year, our turnover will increase by 10 or more per cent and our profitability will increase a lot more than that," said Mr Wilkinson.