Red tape and tax are holding back entrepreneurial success in the UK, according to a new survey by Nabarro and YouGov.
The study decision makers in small and medium-sized enterprises (SMEs) found that 47% think red tape needs to be reduced to drive entrepreneurial activity, whilst 40% said better tax-breaks for start-ups would help.
Although red tape and tax are outlined as the major issues, Many SME decision makers believe that better education (36%) and accessible information (35%) are key to encouraging successful entrepreneurial activity in the UK.
Opinion was split over selecting the biggest challenge SMEs faced when starting up. Hiring the right team and complying with regulations both scored 18%, whilst marketing issues came top for 15% of respondents.
Unexpectedly, an area that didn’t seem to be an issue was funding as nearly 60% of SME senior decision makers said they have all the funding they need. 14% expected their funding to come from bank loans, whilst only 5% selected private equity.
Corporate partner and member of the Entrepreneurs & SME Group at Nabarro, John Finnemore, said: “Although the survey has provided some interesting information, we are fully aware that the pressures facing businesses remain significant, particularly among smaller businesses. Small and medium-sized businesses have clear views on what the Government’s priorities should be to help with their growth ambitions.
“It is clear that more can be done to help SMEs in the long-term, such as reducing red tape and giving better tax breaks."