The �fear of failure�, the stigma of bankruptcy and the embedded British tradition of scorning business success stories is stifling entrepreneurship.

The "fear of failure", the stigma of bankruptcy and the embedded British tradition of scorning business success stories is stifling entrepreneurship in the UK according to the past masters of the business reality show Dragons' Den.

Giving evidence to a commons committee yesterday Doug Richard and Rachel Elnaugh, entrepreneurs and panellists of the BBC show, called for a new deal for small businesses and for business skills to be taught in the school curriculum.

US-born Mr Richard told MPs the risk of failure was greater in the UK.

"It's quite shocking to see what happens when you reach public status in this country, if you stick your head above the parapet everybody takes a shot," said Mr Richard. "The consequences of failure are greater because there is no soft landing, like chapter 11 in the USA, temporary bankruptcy that doesn't carry with it the stigma of bankruptcy."

Conservative leader David Cameron echoed Mr Richard's calls for the introduction of US style "Chapter 11" proceedings - where firms are given court protection while they try to hammer out a deal with creditors.

Mr Richard criticised the "profoundly dysfunctional" relationship of banks and small businesses. "When you get a business loan in the US, your home is still your home. Rule number one here is we want your home and that is going to put people off."

Ms Elnaugh, who has experienced bankruptcy, said lenders should face much tougher scrutiny.

Ms Elnaugh, whose Red Letter Day company crashed in 2005 before being bought out by fellow dragons Peter Jones and Theo Paphitis, said she was disgusted that the role of her bank in the saga had never been properly investigated. "There needs to be a lot more spotlight on the role banks play. I hear hundreds of horror stories about entrepreneurs who have lost their businesses because of the bank."