RED TAPE is in danger of stifling growth among UK SMEs, new research has revealed.
A survey commissioned by energy provider npower revealed 32% of businesses have fears over the amount of red tape and taxes being imposed as well as concerns over the availability of credit and skills.
And 49% of businesses worry that tough legislation and regulation will hamper their ability to grow in the next year, potentially putting the brakes on the success of small businesses just as things are looking up.
The study stressed that while with 21% of SMEs headcount is expected to increase, 28% of decision makers are concerned about recruiting talented staff with the right skills. Other barriers to future growth include lack of bank lending, cited by 47%.
The research also highlighted that while SMEs are considering the short term success of their business, the long term succession plan is becoming a thing of the past with a staggering 71% of those surveyed saying their businesses have no succession plan in place.
Despite all this, the survey showed that SMEs remain confident about their business and the economy.
Other barriers to future growth include lack of bank lending, cited by 47%
The research of 1,008 SME senior decision makers, in the manufacturing, retail, leisure and hospitality and business services sectors, showed 50% of those surveyed expect to see an increase in business turnover during the next 12 months, while 46% are confident their business would be able to recruit people with the right skill-set during the same period, assuming they were able to pay market rate or above.
Jason Scagell, director of npower business, said: “While we’ve seen a clear acknowledgement of the contribution that SMEs make to UK plc in the recent Autumn Statement as well as through initiatives like Small Business Saturday, this study highlights that there is still some way to go before SMEs can honestly say that they are performing at the level they would like. These businesses are often described as the lifeblood of the UK economy and it’s obviously vital that they get the support they need to develop and grow.”
