Accountancy specialist Pegasus has called on the government to reduce the burden of red tape that is imposed on small businesses.
From its position of developing software applications that attempt to automate a lot of the procedures SMEs face the vendor has carried out a survey that reveals those struggling to cope with the regulatory burden feel under growing pressure.
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A quarter of the SMEs surveyed by Pegasus said they spent around two months of the year researching and complying with legislation and 92% 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 burden but for those on the receiving end it didn’t feel like that.
“Time is being spent in areas where it could be more productively used to do other things,” he said.
He added that technology did have a role to play in making life easier and automating processes but it often got little notice about what the government was doing and had to build features into products at a cost to its own development budget.
A spokesman for the Federation of Small Businesses said that red tape and regulations was one of the top issues for its membership.
“If there was less administration then there would be more time that could be spent elsewhere in their businesses,” he said.