A government review by lingerie entrepreneur Baroness Mone of Mayfair has warned the poor struggle to start businesses because of a lack of money and support.

The report, which cost thousands of pounds to produce, also recommended entrepreneurs carefully consider the best deals when picking a business bank account.

Labour criticised the document saying that it highlighted issues that were already well-known and that ministers had done little to tackle.

There was an outcry among the business community in Scotland when Lady Mone was put in charge of the review last year.

Experts questioned if the founder of underwear firm Ultimo was the best person to run the inquiry.

Her appointment coincided with the announcement she was being made a Tory peer, months after she opposed Scottish independence and supported the Conservatives at the General Election.

She faced further criticism when pictures emerged of her using a chauffeur-driven government car to undertake her review.

She described the attack as “unfair”, because she was trying to “help other people achieve their dreams”.

Ministers tasked her with improving the number of business start-ups in disadvantaged communities.

In her ‘Be the boss’ report, she called for more access to start-up loans and encouragement for the self-employed to mentor others.

She also suggested that schools, councils and government should reconsider how to teach pupils business skills.

The 64-page report also praised the Conservative's welfare cuts and described the introduction of the controversial Universal Credit system as “ambitious".

Baroness Mone said: “People living in the most deprived communities still face barriers to starting up their own businesses. It is vital we take steps to overcome these by boosting their confidence, offering more income security and building better business networks.”

She said that she would continue to work in a "personal capacity" with high street banks to create a nationwide network of enterprise hubs.

Work and Pensions Secretary Iain Duncan Smith said that she had made "insightful recommendations" and ministers would look at her recommendations carefully.

But Labour's shadow Scottish Secretary Ian Murray said: “Businesses across the country are being let down by this Government’s short term and short sighted approach. Over the past five years we have seen the productivity gap widen, manufacturing shrink and small businesses suffer while companies like Google get special treatment.

“Michelle Mone’s report highlights many of the issues that are already known and which this Government has not done nearly enough to tackle."