New research has indicated that the credit crunch is likely to have more bad effects on small businesses before the problems ease.
The survey, by the Small Enterprise Research Team (SERT), found that entrepreneurs’ expectations for their businesses have slumped to close to 0% - the lowest level in six years.
Almost 90% cited a series of bad regulations by the government as their main problem, while more than 60% said they are spending more time on complying with ‘unclear and complicated’ regulation.
On average, businesses are spending more than 5 hours on paper work, which almost doubled when the business owner is a sole trader, said the report.
In a survey published by the Forum of Private Business (FPB) last year, business owners were reported to be spending around 14 hours a month ‘trawling’ through health and safety red tape.
FPB spokesperson Phil McCabe said the research demonstrated an mood among small business owners and entrepreneurs.
“It is clear small firms are feeling vulnerable and less optimistic about the future,” he said.
“The research highlights the growing feeling among smaller businesses that the endless amount of paperwork they have to process is a significant barrier to growth.”
© Crimson Business Ltd. 2008
