His point about start-ups though is equally important. Staying a start-up is the model.  Start-up is not a phase that you go through to get to be a big, mature company. It is the way that a company which stays at the forefront of its industry operates. Always innovating, always iterating, always creatively destroying in order to build the next generation of product.

At the other end of the scale, there are dozens of start-up conferences in the UK today.  This past weekend, I attended and judged Start-up Weekend EDU. This is a 3 day weekend conference on educational technology. 60 or so people come together and develop applications over the weekend, and compete for a prize. The level of creative and directed energy is intense. I was really impressed with what these twenty somethings had pulled off over the weekend. None of the product teams felt they needed more than £20,000 to take their application to market.

NESTA, the UK's Innovation Agency, has twice produced research demonstrating that 6% of all UK firms are defined as high-growth and create 54% of all new jobs.

Start-ups are the model for economic policy. They are being built all over the country. There is no market failure in the new digital company scene.

With these things in mind, I shudder when I think about what Tuesday's Budget Note will hold for the UK. I dread this Santa Claus type game that the government continues to play of handing out more money to this enterprise program or that infrastructure project. It's not that government doesn't have well-intentioned people; it's just that none of these programs will work. In 13 years of working with fast-growing young businesses, I've never once heard anyone claim, "were it not for X, Y or Z government program, I wouldn't be a business success".

The  government needs to focus on doing less and getting out of the business of running things. Politics cannot keep up with economic forces.

Today, due to the network effect that digital technologies and business models bring to all industries, companies are growing differently. Those that align all of the stakeholders win big.  Apple created a clear set of economics for the consumer of music, the artist, and Apple. As a result, they scooped the new digital music industry. Monitise organised the business model for the mobile money ecosystem of mobile carriers, banks, the consumer and Monitise. As a result, they've become the global leader in mobile money.

The unit of trade has also shifted from big business and the corporate to the individual and start-ups. The market will not recover because UK PLC starts hiring but because Start-up Weekends flourish across the country, and more UK PLC's operate like "start-ups with good cashflow".

What every good entrepreneur or investor knows is that money doesn't solve a problem. You can throw a lot of money at a bad product, team or business model, and it will remain bad.

Government should not try to figure out which projects to back, or which teams to back. The ultimate confidence move would be to trust British people to build the right companies, spend with their own money, and invite investors from around the world in to back our projects. By enabling people and businesses to keep more of their own money by small business tax holidays and lower income tax, business owners and citizens would build and spend. When they do, they create growth. If at the same time, large companies that make billions in revenue in the UK, eg Google, started to pay a more appropriate level of tax, then we could fund the tax breaks to citizens and business owners.

So with every billion pounds that is handed out on Tuesday, the government should ask itself, is there anyone else in Great Britain who is better placed to do this than we (the government) are? If so, let them do it. Instead of Tuesday, reading out a spending list, shock the populace by letting them know that government expects them to build and spend, and will be enabling them to keep more of their money to do so.

At the Start-up Weekend, one presentation quoted a statistic that 50% of GCSE students are barely literate. With results like that, we can't say that the current educational system is working.  And yet, fifteen entrepreneurial teams were obsessively focused on building better methods of educating the young in just one location on just one weekend in the UK.

Innovation and growth are always about tapping into human ingenuity, using the best business models and incentives, understanding human psychology, and taking risks. Ordinary people know how to manage these things; they also know how to make extraordinary businesses happen. 4.8 million SME's in the UK and 10,000 fast-growing SME's are busy building the future.

Let them keep their money in order to build it faster.