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Red tape stifles budding businesses

Article Date:  Nov 20 2007 Nick Britton

Nearly half (46 per cent) of owner-managers who would not set up a business again cite red tape as the biggest deterrant, according to research from software company Sage. Growth businesses also want more help from the Government, says the online survey of 2,017 Sage customers.

Jo Ray, managing director of Sage’s small business division says that red tape ranges from the need to introduce family friendly policies to environmental legislation, dealing with tax and the minimum wage.

She comments: ‘Some of this legislation is very important, but businesses only have so much time. In smaller companies, it’s up to the owner to be an expert on everything, which makes people worried and frightened about employing staff.’

Recent research from the Federation of Small Businesses suggests that the average growth company spends seven hours a week dealing with red tape.

The research from Sage also reveals that only one in five owner-managers agree that the Government provides sufficient support and advice for those starting businesses.

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