New Chancellor Alastair Darling has been urged not to respond to the recent furore over private equity by raising taxes on entrepreneurs generally.
Sue Summers, chief executive of Investbx, the online regional share trading facility for West Midlands based SMEs, which is due to launch this autumn, wants any action from the Government to be targeted rather than a general attack on investment.
Private equity has been in the headlines for several months as a result of a campaign by trades unions, and others, to highlight apparently generous tax breaks.
Underlying the concerns is the fact that such individual financiers are often able to take full advantage of reduced capital gains tax of only 10 per cent in many circumstances.
Ms Summers said: "It is no secret that the Government may look at the tax reliefs on entrepreneurial investment in this year's Pre-Budget Report.
"I recognise that there is considerable concern about a few high-profile deals, where substantial tax reliefs have been earned quickly in the face of a rapid downsizing of the businesses in which the investments have been made.
"But I hope that, if the Chancellor does address the legitimate concerns about headline cases, he should leave the tax reliefs for ordinary private equity investment generally alone.
"The so-called taper relief, which is the factor which cuts capital gains tax back, has proved to be a real incentive to entrepreneurs to use wealth they have already generated to help build other businesses.
"If it were to be withdrawn, a considerable pool of money which could be available to back the growth of West Midlands businesses, may be lost and the region's businesses would suffer."
At the moment, it is broadly the case that investors in companies whose shares are not listed on a recognised stock market, can pay only 10 per cent tax on the growth in value of their shares as long as they hold them for two years or more.
Originally intended to benefit entrepreneurs generally, the rules have been used to increase the "post tax return on investment" by private equity firms and their directors or partners, who have invested personally.
A Treasury Select Committee has already, in its interim report, urged the Government to look at the tax treatment of this so called "carried interest" among other aspects.
Ms Summers points out that the West Midlands economy is still in transition and she says it needs all the help it can get.
She went on: "Private equity investment for growing medium sized businesses has been a factor in developing and widening our business base and encouraging innovation.
"We need the current tax regime to continue for such businesses and this will work well with our plans to build Investbx, where investment should generally attract lower tax bills, as well as being boosted by the creation of a market for shares.
"Unlisted businesses bring considerable benefits through the business property reliefs from inheritance tax as well as taper relief, and I would like to see these tax advantages left alone."