Introduce US-style LLC companies. They are fast, cheap, and easy to form, have minimal reporting and regulatory requirements, and are ideal for single-owners like small businesspeople. They provide the benefits of limited liability that you'd normally get with a limited company, but also provide flow-through taxation so you don't have to pay tax twice on the profits of your company (like under the current system).
This form of company would be very attractive as an alternative to limited companies or sole proprietorships.
Why is this idea important?
Small businesses fuel the growth of an economy. During a recession, new small businesses tend to form and flourish at a higher rate. They drive economies out of hardship.
This form of company, with its reduced paperwork, limited liability, and lack of double taxation would further help to encourage the growth of small business in Britain.