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| Red Tape Continues to Strangle UK Businesses Nearly half of businesses in the UK (46 per cent) cited red tape as the single biggest reason why they would not start up a business again. This is a large increase on three years ago, when only 27 per cent said red tape would hinder them setting up in business again. The Sage Heartbeat research revealed that only 21 per cent of owner-managers believe that the Government provides sufficient support and advice for starting up a business. Respondents were asked what support the Government did offer that best helped them run their business, including: funding, tax relief, advice on administrative efficiency, information on training and technology and advice on introducing new products and services. A startling 70 per cent of businesses felt that Government had not been the greatest form of support to them in any of those areas. The 2007 Sage Heartbeat Survey, conducted by YouGov and now in its fourth year, looks at dominant issues facing UK businesses, and represents the views of over 2,000 business decision makers. Small to medium enterprises (SMEs) accounted for more than half the business turnover in the UK (51.9 per cent) during 2006 and employed around 13.2 million people. Kim Harvey, Managing Director of Harvey Electrical Ltd, says: "The one area where I would like to see more support from the Government is cutting down red tape. It's so hard to keep abreast of all of the legislation coming in. Not only do we have the legislation in employment law, health and safety, but in our industry in particular, they are bringing in legislation to make buildings energy efficient and compliance with the WEEE directive on disposal of waste. It's so much more intense than it ever was before and that's what I find really hard." Jo Ray, Managing Director of Sage's Small Business Division comments: "This survey has highlighted the fact that red tape and insufficient funding are still important issues for the entrepreneurial community of the country. The fact that nearly half of the people surveyed (46 per cent) see red tape as the biggest stumbling block in their business aspirations, and nearly one third of these are businesses that started up less than a year ago, it is very clear that the Government needs to do more to make entrepreneurship more attractive to individuals." write your comments about the article :: © 2007 Computing News :: home page |