FSB: Red tape costs small firms seven hours a week.

The Federation of Small Businesses (FSB) today publishes a report and DVD examining the impact that regulation has on entrepreneurs. It highlights the fact that the average small business spends seven hours per week dealing with regulations and paperwork. The launch in Brussels will be attended by Commission Vice-President Gunther Verheugen and the UK launch will be at the FSB fringe event ‘Small Business Matters’ at the Conservative Party Conference in Blackpool.

The DVD is a compilation of interviews with small business owners from across the UK explaining what they would do with the seven hours each week that they currently spend filling in forms. The report outlines the benefits to the economy and society that would follow from businesses getting their seven hours back.

The FSB is concerned that the red tape burden is preventing small firms from growing and employing more people, as well as working against other Government priorities, such as increased community involvement by businesses and employee training. Tackling the red tape burden would benefit both businesses and the communities in which they operate.

The FSB wants to encourage the UK Government and the European Commission to deliver on their promises on deregulation. The Commission has committed to cutting red tape and is encouraging member states to follow suit. Estimates put the potential gain from deregulation at ?150 billion across the EU.

Tina Sommer, FSB EU Affairs Chairman, said:

“Small businesses do not dispute the need for regulation. In many ways it is beneficial because it brings certainty and ensures fair competition.

“Both the UK Government and the EU institutions are relying on entrepreneurs to create jobs and wealth. But the regulatory burden is weighing down small businesses. We have heard warm words from politicians before about cutting red tape, but it is now time for action.

“There is no doubt that the volume and complexity of red tape is excessive. Shorter, simpler regulations will enable businesses to follow the rules more easily as well as protect their existing employees. They will also be able to hire more staff as they use more of their seven lost hours to grow their businesses.”

Some of the many activities that entrepreneurs said that they would do with seven extra hours per week were:

58% of business owners would spend time training staff or working with schools;
50% would spend more time developing their business ;
39% of business owners would devote more time to their local communities;
37% would like to spend more time with their families.

ENDS

Notes to Editors:

1. The report can be found at http://www.fsb.org.uk/documentstore/filedetails.asp?id=382. The accompanying DVD is available from the FSB on request from rosina.robson@fsb.org.uk or can be found online at http://www.fsb.org.uk/data/default.asp?id=529&loc=policy.

2. The launch event in Brussels will take place at 1800 local time in the West Midlands in Europe offices, 6th Floor, 22-28 Avenue d’Auderghem – contact Margareta Przybyla, margareta.przybyla@logos-eu.com or on +32 2639 6230.

3. The report will also be launched at the FSB fringe event ‘Small Business Matters’ at the Conservative Party Conference. This event is at 1800 on Tuesday October 2nd 2007 in the Derby Room of the Imperial Hotel, Blackpool.

4. Small businesses employ 58% of the private sector workforce, contribute over 50% of UK GDP and make up more than 99% of all UK businesses.

5. The FSB is Britain’s biggest business organisation with over 210,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk.

Contacts:

For interviews with FSB Chief Spokesman Stephen Alambritis or other senior FSB personnel please contact the FSB Press Office.

FSB Press Office
Matthew Knowles: 020 7592 8113 / 07917 628991

Simon Briault: 020 7592 8128 / 07917 628998

Belinda Webb: 020 7592 8121 / 07825 125 695

For regional FSB contacts please go to www.fsb.org.uk/regions