Red tape is still a major concern for UK small businesses

43 % of companies feel that Government red tape is in fact the biggest challenge their businesses has had to face throughout 2007, this in a year where businesses already faced a number of other unexpected challenges, such as flooding, petrol strikes and the credit crunch. The good news for Government, however, is that this is an improvement on last year’s results, where nearly 59% predicted it would be their main barrier to growth. And as entrepreneurs look to the future, only 36% are concerned about red tape revealing an encouraging optimism. This pattern of results could very well be an indication of confidence in the Government to stay true to their word, and dramatically reduce the legislative burden by 2012. Looking towards 2008, 47% of businesses state that increasing sales turnover will be a primary concern for the coming year. Where as 42% of owners and managers would simply like to maintain their current level of turnover for the year ahead. David Robertson, chief executive of Bibby Financial Services, says, “It’s clearly been a tough year for the small business community with no let up in the amount of Government red tape that they have to deal with, but things are definitely on the up. “With the promise of a significant reduction of red tape by 2012, owners and managers will soon be able to focus more of their energy on maintaining and growing their profit whilst ensuring their businesses remain in top financial shape. With a strong cash flow in place, businesses can take advantage of opportunities when they present themselves as well as sustain any potential downturns that the new year may bring.”