A staggering 41% of company bosses say they would be unlikely to set up in business if the opportunity arose again.
The figure, part of the 2005 Sage Heartbeat Survey, is up from 27% in 2004. Perhaps more worrying is that 49% of women (compared to 36% of men) say they would not start a new business if the opportunity rose again. The survey is an ongoing study into the ups and downs of business life in the UK, conducted by YouGov on behalf of Sage UK.
The results call into question the reality of the so-called enterprise culture supposedly gripping the UK. They also emphasise the increasing impact on business of red tape, cited as one of the biggest reasons for entrepreneurs turning their backs on future business opportunities.
Employment legislation is a key area of concern:
· 69% of respondents agree that the burden of proof has swung too far in favour of the employee
· 61% that the continued extension of family-friendly policies is bad for business
· 71% (76% of men and 62% of women) would support UK opt-out from future enterprise culture weakening EU legislation
A fifth of all businesses have considered giving up because of red tape surrounding employment legislation. The growing mountain of red tape has actually stopped 32% of businesses from taking on new employees.
The cumulative cost to firms of regulations introduced since 1998 is now £39bn, according to the British Chambers of Commerce's "Burdens Barometer", published recently. David Frost, Director-General of the BCC, says: "British business cannot compete with a £39bn millstone around its neck".
According to the Sage research, UK bosses have particular problems in dealing with issues surrounding poor staff performance, long-term or unauthorised absence and redundancy. Getting it wrong can prove costly. Last year saw 115,042 employment tribunal claims brought against employers, representing a 61% rise over the past decade, according to figures from the CBI. The average unfair dismissal award (2003/4 figures) was £7,275; sex discrimination £12,971; disability discrimination £16,214 and race discrimination £26,660.
After issues highlighted in last year's Sage Heartbeat Survey, Sage HR Advice, a service providing customers with a detailed human resource and employment law website and access to qualified professionals, was introduced. Sage has now expanded its business advice service with the launch of Sage Health and Safety Advice.
The legally reliable services translate employment and health and safety law into plain English and promote best practice. In addition to a comprehensive website giving advice and document templates, the guidance includes e-mail alerts, monthly newsletters, FAQs, telephone and e-mail support to ensure that companies remain compliant.
As part of its commitment to the health of UK business, Sage has set up an HR Advice information line on 0845 245 0268. Further information is also available at www.sagepresscentre.co.uk/heartbeat/sageadvice
According to Jo Ray, Managing Director, Small Business Division, Sage (UK) Ltd, "Sage has been working with SMEs for 24 years and through our customer base of over 600,000 small businesses we understand the issues they face. Everything we do is aimed at helping business owners save time and money so they can focus on what they set out to do. While these findings are concerning, they show more than ever that businesses need help in dealing with the multitude of issues that they face in the UK."
"Human resources, whether it be recruitment, employee motivation or compliance is vital to any business. However, many small business owners do not have access to reliable, practical advice. Sage's HR and Health and Safety Advice services provide exactly that – they will help protect and grow your business, pre-empt issues before they occur and save time and money.
“The services are further evidence of Sage's commitment to providing SMEs not only with the best business management software but also with outstanding customer support and advisory services."
"The worry for many small companies," says Duncan Cheatle, founder of entrepreneurial networking group The Supper Club, "is that as soon as they start looking into the issue of compliance with legislation, they are opening a can of worms.
“Business owners fear that what they will find will take time to implement and prove costly to their business. Any service that can provide affordable, practical advice is welcomed, especially from a company like Sage, which is widely trusted by SMEs."
