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NEWS
Skills, red tape and crime are the main barriers to small business growth
Research carried out by the Federation of Small Businesses into the problems SMEs face when trying to grow has revealed that red tape is one of the biggest obstacles to success. “Lifting the Barriers to Growth 2006” is the fourth biennial survey of the FSB’s 195,000 business members and the largest survey of its kind. The survey was analysed by the Universities of Stirling and Strathclyde and reveals that FSB members employ nearly 2 million people. This is further reflected in the fact that more than half the businesses in the survey have increased their workforce in the past two years. The survey received 18,939 responses and the headline results are that skills, red tape and crime are the main barriers to small business growth.
“Over 97% of UK businesses have less than 20 employees. Small firms make up over 50% of the private sector workforce, some 13 million workers, and generate over half of the UK’s GDP,” said John Walker, FSB National Policy Chairman.
“These problems, which our survey confirms yet again, must therefore be addressed by the Government because our country’s economic health depends on the success of small businesses. We are regularly in touch with the Government to improve the situation for small firms and we look forward to fruitful future developments”.
“Regulation, both its volume and complexity, crime and a poorly skilled workforce are issues that we have raised many times before. It is therefore worrying that they are still the main barriers to growth for small firms. It demonstrates that action taken so far has been inadequate. We will therefore call on the Government in our discussions to do more to lift these barriers and open up the way for small businesses to prosper.”
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