Red tape becoming a serious problem for small businesses

Red tape is becoming a serious problem for UK startups according to the respected Sage Heartbeat Survey, which is based on responses from over 2,000 business decision makers.

Whereas the 'red tape' problem might have previously have been talked about in an almost jovial manner, a growing number of surveys suggest that government regulations and interference are now becoming a real threat to enterprise in the UK.

According to this latest survey, 46% of respondents said that red tape was the single biggest reason why they would not start up a business again in the UK. Worryingly, this is a massive increase on the 27% giving the same response three years ago.

The research also showed that only 21% of business owners believed the Government provides sufficient support and advice for startups. In fact, 70% thought that the Government had not provided them with support in any of the key business support areas.

Jo Ray, MD of Sage’s Small Business Division said:

“This survey has highlighted the fact that red tape and insufficient funding are still important issues for the entrepreneurial community of the country. The fact that nearly half of the people surveyed (46%) see red tape as the biggest stumbling block in their business aspirations, and nearly one third of these are businesses that started up less than a year ago, it is very clear that the Government needs to do more to make entrepreneurship more attractive to individuals.”