Help must be directed at micro firms, EU told

The European Commission must take small and micro businesses into account when considering helping European business, it has been claimed.

The Institute of Chartered Accountants in England and Wales (ICAEW) welcomed the European Commission’s proposals to simplify the business environment for EU companies, but said real reductions in regulatory burdens must be delivered, especially for the smallest micro businesses.

“I’m pleased that the European Commission has recognised the need to simplify the business environment and broadly support the main proposals,” said Clive Lewis, the ICAEW’s head of small business issues.

“Requirements on businesses vary widely across the European Union. It is therefore right that the Commission gives member states flexibility to introduce measures to reduce the regulatory burden, especially on the smallest businesses.”

According to the ICAEW’s 2006 Enterprise survey, ‘a greater burden of regulation falls on smaller businesses – yet it is businesses of this size that have higher growth potential’.

“By recognising this, and helping them focus their time on their businesses rather than regulation, the Commission can have a real impact,” Lewis added.

European company law, accounting and auditing have been identified as priority areas within the Commission’s proposals for regulatory simplification, as analysis shows these areas have particularly high administrative costs.

© Crimson Business Ltd. 2007