Small businesses are being prevented from fulfilling their potential due to ever-increasing levels of red tape, a pressure group has claimed.
A survey, released by the Forum of Private Business (FPB), has revealed that 83 per cent of business owners believe that high levels of regulation is stifling their potential for growth.
It also indicated that small business owners are working longer hours in order to deal with red tape issues, which, the FPB argue, is a ‘damning indictment’ of the government’s regulatory policy.
Nick Goulding, FPB chief executive, said: "The wealth of regulation being heaped on small businesses is having a profound impact on how much time business owners actually have to run and expand their business.
“FPB's member research indicates that in excess of 10 hours per week are taken up with wrestling with legislation and that the compliance regime is a distinct barrier to potential expansion.”
The FPB argue that regulatory compliance for big firms is significantly lower than that of their small business counterparts. Larger businesses often have departments specifically set up to cut through the red tape as well as having an advantage when it comes to PAYE and VAT, the group claimed.
The case for a more robust assessment of red tape has been championed for some time, with businesses urging the government to think ‘small’ when implementing regulation.
Goulding said, "Red tape has consistently been at or near the top of our members' main concerns and priorities and it is essential that the government sits up and takes notice of the fact that ill-thought out regulation is having a hugely damaging effect on small businesses.
“We should be encouraging a dynamic small business community, not shackling the potential for growth."
