Small businesses fed up of red tape

The UK’s small businesses want the government to focus on cutting red tape and providing financial incentives to encourage investment, according to Lloyds Bank.


Their study revealed that 51% of businesses see red tape as a barrier to progress, while 42% suggest that better incentives are needed if investment trends are to continue.


Small businesses are clearly aware of the issues they are facing and want swift action so they can take advantage of the recovering economic situation.


A third of businesses also recognised the need for employees to have the right skills, while tackling late payments and opening up export markets were listed as issues for a smaller proportion of firms.


In terms of tackling red tape, those in the real estate sector believe it needs to be tackled more than anyone else, as 60% of firms want swift and decisive measures to be taken.


Some 41% of the healthcare sector and 45% of the public sector also feel that red tape is hindering their ability to provide the services they want to offer.


New business secretary Sajid Javid has already stressed the importance of tackling red tape and is planning to save SMEs more than £10 billion across the next five years via the new enterprise bill.


This finance should then be available for small businesses to focus their attentions elsewhere, giving them the opportunity to expand their marketing, sales or development offerings.


Significant levels of growth should then be noticed, providing a further economic boost to the UK as it continues to recover from the financial crisis.


Although many businesses may have a clear idea of what they want to achieve, it is not always possible and firms can face financial difficulty if they do not carefully manage their funds.


In some instances corporate recovery can help a business to find feasible solutions, but quick and decisive actions are recommended in order to achieve the best results.


By Phil Smith


If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1144.

View all Business Insights