23-08-2007
UK SMEs burdened by regulation
Small to medium-sized enterprises (SMEs) in the UK are disproportionately burdened by regulatory requirements when compared with their larger counterparts, it has been claimed.
According to comments made by Alexander Ehmann, a representative from the Institute of Directors, SMEs are likely to be disproportionately affected as they lack the ability to effectively deal with bureaucracy compared with their larger counterparts.
"The government has in some ways recognised that the burden has disproportionately fallen on SMEs by looking at the administrative burden," said Mr Ehmann.
"Some larger businesses may be interested in regulation within their industry because it can sometimes set up artificial barriers to new competition," he added.
Indeed, according to Mr Ehmann, sole traders can be particularly exposed to the problems of regulation when employing their first staff member.
New employers should ensure that they take out mandatory Employer's Liability Insurance, and that all other areas of business are covered appropriately.
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