Start-up retail businesses are suffering from an excess of regulation and bureaucracy, research from Barclaycard Business has revealed.
Nearly three quarters of retail firms under 12 months old feel that their performance is being held back by red tape, and 71% of those surveyed believe that too many regulations are imposed on UK retail businesses.
The new firms are also struggling under increasing tax burdens, with 64% witnessing a rise in rates and taxes over the last 12 months. Over eight out of ten new retail firms believe that the amount of tax and rates they pay is “too much”.
Start-up companies are most concerned with local rates and taxes, the survey reveals, with most of the increases in charges over the last year stemming from local authority business rates (72%), rather than those at a national level.
The red tape imposed at a national level however is the biggest burden for 41% of firms, compared to 29% who cited local regulation.
Bill Thomson, commercial director from Barclaycard Business, commented: “It is clear that new business owners have experienced increased financial pressures from tax and regulation in 2006.
“With the New Year here and new ventures or expansion opportunities in view, retailers should take heed of necessary tax and regulation and ensure they seek professional advice to help them plan for all costs involved.”
He added, “A healthy economy benefits us all. We need to both encourage entrepreneurship and support established businesses in our communities.”
© Crimson Business Ltd. 2007
