Excessive red tape is preventing thousands of Europe's one-person firms from taking on staff, EU research reveals.

According to a study by the European Commission, more than 10% of one-person enterprises (OPEs) complain red tape is the main issue stopping them from recruiting employees.

The report said if each of these firms hired just one worker, around 1.5 million new jobs would be created.

Among the administrative burdens slammed by business owners were complicated tax and social contribution rules and strict employment laws governing workers' protection against dismissal.

European entrepreneurs spend an average 3 working days to research and fulfil the necessary requirements for taking on staff, the report said, such as registering with public institutions and carrying out health checks.

Owners are forced to put aside another 9 hours per month for the administrative procedures involved for just one employee.

The report recommended recruitment regulations are reduced and simplified through schemes such as one-stop-shops for all social security and tax matters and greater use of online registration procedures.

Forms could also be shortened to make them more user-friendly and certain compulsory requirements such as health checks should be removed if not necessary.

A quarter of OPEs said high training costs put them off from taking on staff so the study also called for non labour costs for small businesses to be cut.

It highlighted several schemes already in place in EU member states which are helping to reduce the administrative burden for Europe's smallest firms.

The UK government's No nonsense business guides were praised, as was the French enterprise job pass initiative under which social security organisations relieve small firms of employment procedures and recruitment formalities.

The EU is currently consulting with businesses on ways to reduce red tape, while the European Charter for Small Enterprises, to be discussed at the annual conference in Luxemburg this week, calls on Member States to take action to support and encourage small businesses.