In a debate surrounding the scheme, Accountancy Age says that while the government is keen to push tax relief of up to 50 per cent on investments worth up to £100,000, investors are not as forthcoming as predicted.
In addition, tax breaks of 78 per cent are also available because of a capital gains tax holiday - in place until 2014 - designed to spark growth within start-ups and small businesses.
However, the news provider speculates that many start-ups, while eligible for SEIS, could be finding it difficult to locate the funding initially, while heavy regulation means attractiveness is "far from straightforward".
SEIS was launched by Chancellor of the Exchequer George Osborne in April last year to help encourage small business and start-up investment, offering tax relief to investors.
Posted by Emily Smith