The continuing burden of red tape is leaving entrepreneurs so stressed they’re unable to sleep at night, a new survey has claimed.
Of 500 small business owners questioned, 81 per cent said red tape and legislation were the major factors causing them day-to-day stress. Worryingly, almost half of the entrepreneurs suffering from stress claimed to be unable to sleep at night.
The news comes just a day after Startups.co.uk reported that the government has been ignoring rules it put in place to regulate the impact of new legislation on small businesses.
Business groups have claimed the government isn’t doing enough to limit red tape and help small business owners cope with it. The survey validates the claims, showing that 79 per cent of businesses owners interviewed felt that red tape had worsened in the last five years.
However, while the government is often seen as the main creator of red tape, the survey revealed that banks are also to blame. Over 40 per cent of respondents felt that banking is made unnecessarily complicated, with the main area of confusion and uncertainty being bank charges.
Sheila Macdonald, chief operating officer at The Co-operative Bank, which funded the research and has launched a new account called Clarity designed to make banking simpler for small businesses, said:
“Red tape activity affects businesses large and small. With the launch of Clarity we are aiming to help Britain’s SMEs succeed in what is unquestionably a competitive environment. We are hoping our approach will make banking one less thing for small businesses to worry about.”
For more information on Clarity, click here.
