A 2004 BBC survey report indicated that red tape cost the British business over £30 billion that year. Red tape or bureaucratic and regulatory hassles is one of the main reasons why small and middle size enterprises hesitate from taking on growth plans.
In fact these firms would think twice even before considering employing new staff. This is because employment law is one of the main areas where red tape seems to be most evident.
In the Sage Business Heartbeat Survey of the ‘health’ of small and medium enterprises in the U.K. 82% respondents cited employment red tape to be a chief cause of worry, in the 2005 Heartbeat survey.
Other areas included in the survey are the affects of price competition on businesses, inhibitions of small firms when it comes to employing and the affect of family-friendly employment policies on women.
The Forum of Private Business (FPB) also reported that its survey of small businesses found that 83% of the businesses owners felt that regulations and red tape hampered business growth.
It further revealed that regulation compliance for small and medium enterprises was much more stringent than for bigger businesses. To facilitate growth and success of small and medium businesses it is vital to reduce the red tape that they encounter in virtually all aspects of their work. If you would like to learn more about running or starting a small business click here.
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