Recession is a great time to be an entrepreneur, according to Dragon Theo Paphitis..

Helping to launch Kent's newest business group, Mr Paphitis, a familiar face to viewers of television hit show The Dragon’s Den, said in Oakwood House, Maidstone, that entrepreneurs were "getting a sniff at things" that had not been there in the good times. Recession offered some great opportunities.

Unemployment would drive up entrepreneurship, especially among young people. "Necessity is going to be the driver and catalyst that is going to fire a lot of young people who wouldn’t normally have gone on to be entrepreneurs.

"When you’re leaving school, and thinking there’s not a lot out there for you, you will want to create something for yourself. This recession is the catalyst."

He criticised the Government for not being honest enough to admit it did not have the answers to recession, and that had caused a lack of confidence.

"No one in Government has been able to deal with what’s happening out there at the moment, not being honest enough to say: "We don’t know what’s going on and we’re making it up as we go along."

"They are trying to pretend they know what’s going on and everything’s under control and the folowing week there’s another disaster, and another disaster after that."

Entrepreneurship was "something that’s deep inside you," he added.

He denied that the Dragons were cruel to the entrepreneurs who appeared on the show trying to gain their cash. "That’s called life, life is brutal."

Mr Paphitis was guest of honour at the launch of the Maidstone and Weald Business Forum by prospective Conservative parliamentary candidate Helen Grant. It was attended by 150 business people and guests, including MP and Tory party chairman Eric Pickles.

Mrs Grant said the forum was being launched in difficult times. "But we’ve got to seize the day, get on, make the most of it and help each other," she said. "I have set up this Forum as a means for local business people to share ideas and opportunities, and to also create a clear communication channel between local firms, local government and the shadow cabinet."