Scotland's entrepreneurs are creating up to five times as many jobs as their counterparts elsewhere in the UK.

A university study found that although just 14 per cent of men and five per cent of women are self-employed in Scotland, they employ more than 10 male members of staff per company - the average in the rest of the UK is just two men per company.

The Scottish entrepreneurs also employ just over three female members of staff, again more than most other regions in the UK.

Forum of Private Business spokesman for Scotland Jim Gorie welcomed the study, which was carried out by the University of St Andrews, Hull University Business School and Cranfield School of Management.

"The Scottish Assembly's decision to free 120,000 small firms from paying business rates is a bold move and will aid many struggling companies," he said. "It is particularly valuable for start-up companies and retailers struggling with the current credit crunch."

However, he said more needed to be done to help small businesses, including reducing the burden of red tape.