Although two-thirds of small businesses seek information about setting-up their business, only five per cent visit the government's Business Link service, according to government research.

The Annual Small Business Survey 2006-07 shows that 12 per cent of entrepreneurs seek the advice of banks and 16 per cent consult an accountant at the time of setting up or taking over their business.

A significant number of businesses - six per cent - look to the legal profession for guidance and only 16 per cent seek some sort of government guidance.

The report found that much of the advice start-ups used was informal, with 17 per cent of entrepreneurs going to friends and family for guidance.

Business minister Shriti Vadera says the results of the poll show the relationship between small business and the government faces 'continuing challenges'.

She promises the government will try to 'ease the burden of regulation'.

The survey interviewed 9,905 small businesses across the country between November 2006 and February 2007. It was produced by the Department for Business Enterprise and Regulatory Reform which aims to help business growth.