In the UK, I've advocated for R&D tax credits to help ease the financial burden felt by many startups. And it's working. Small businesses often operate at a loss for the first few years. Tax credits allow these small businesses to make investments in workers, infrastructure or equipment - the freedom to build new ideas along with bottom line.
The CIPD has correctly pointed out that performance management systems, properly followed afford a perfectly efficient method of exiting an under-performer from an organisation. Unfortunately for many small businesses the type of performance management systems they refer to rely on an HR capability they do not have, or consultancy they cannot afford.