Two in three (67%) entrepreneurs expect to increase headcount in 2010, with just 8% planning cuts, according to research from Investec Specialist Private Bank.

The research also shows that 14% of entrepreneurs expected to increase their workforce by over 20% during 2010, while 14% said that their workforce would increase by between 16% and 20%.  

However, Investec warns that the new coalition government will need to create an attractive environment for entrepreneurs, so that they feel encouraged to grow their businesses.Just 3% say that the overall regulatory and tax environment in the UK make it very attractive to launch a new business here.  

At the start of this year, 10% of entrepreneurs said that they intend to shift their UK businesses to other countries with more favourable business environments, and a further 17% are currently considering doing this.