Three quarters of British small business employers expect regulations to become more constrictive over the next three years, according to new research.
The survey, conducted by Bank of Scotland Business Banking, looked at the views of 1,000 business owners and found that nearly six out of 10 respondents think that the complications of red tape are preventing their business from maximising performance.
The findings coincided with the results of the Bank of Scotland Small Business Confidence Index, which found that confidence levels of British entrepreneurs have fallen over the last few months.
Two thirds (67%) of entrepreneurs agreed with CBI director general Richard Lambert’s sentiment that “red tape and regulation only serve to dampen entrepreneurial flair”, while an equal amount believe that UK implementation of regulations is stricter compared to mainland Europe.
Health and safety rules came out as particularly unpopular: when asked if they could ditch a piece of red tape, more small business owners chose it over any other regulation.
“While the index score has dipped over the last quarter, confidence among small business owners is still strong, particularly when it comes to assessing their own growth prospects,” commented Mark Curran, head of Bank of Scotland Business Banking.
However, he also voiced his concerns: “It is worrying to see that, despite demonstrating such strong self-belief, so many of these businesses continue to feel the pressure of regulation compliance.”
“While there clearly is a requirement for a certain level of regulation, the ever-increasing burden of red tape appears to be weighing heavily on the shoulders of SMEs.”
© Crimson Business Ltd. 2007
