In reply to M.Taylor:
Hah, I hadn't thought of that. I thought about it in practical terms.
As a hypothetical case:
The company I work for pays my wages and employer's N.I. and I pay my taxes too. The revenue I have created has also enabled it to create lots of other jobs and therefore tax revenue.
With 50% of new business ventures folding in the first 12 months and the odds of getting the economies of scale my current company enjoys very low, I would need to work harder for the business to succeed. To start with, as S-E I would be encouraged by my accountant to pay less tax and would not be able to afford to create any jobs I couldn't do myself, the legislation and cost (see employers NI point earlier) is too great. So it becomes more than likely that I would increase my personal wealth to reward myself only for my additional work in being succesful.
This 'idea' may help me but it definitley wont help the economy.
Plus if I fail (which obviously is not the intent, but 50% do), I lose my house and have to start back all over again. - That might give the ex-civil servant a job but I doubt it