Accountancy specialist Pegasus has called on the governmentto reduce the burden of red tape that is imposed on small businesses.
From its position of developing software applications thatattempt to automate a lot of the procedures SMEs face the vendor has carriedout a survey that reveals those struggling to cope with the regulatory burdenfeel under growing pressure.
A quarter of the SMEs surveyed by Pegasus said they spentaround two months of the year researching and complying with legislation and92% of those asked said that sort of pressure was hindering entrepreneurialismin the UK.
Kevin McCallum, commercial director at Pegasus Software,said that the government might say that it is trying to reduce the regulatory burdenbut for those on the receiving end it didn’t feel like that.
“Time is being spent in areas where it could be more productivelyused to do other things,” he said.
He added that technology did have a role to play in makinglife easier and automating processes but it often got little notice about whatthe government was doing and had to build features into products at a cost toits own development budget.
A spokesman for the Federation of Small Businesses said thatred tape and regulations was one of the top issues for its membership.
“If there was less administration then there would be moretime that could be spent elsewhere in their businesses,” he said.