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Starting a business 'is harder now than a decade ago'

Published On 16 April 2007 at 12:00:34

British small and medium-sized enterprises (SMEs) think that it is harder to start a new company now that it was a decade ago, according to a group which represents business interests.

The British Chamber of Commerce (BCC) revealed that 49 per cent of SMEs thought that it was significantly tougher to start a business now compared to when Labour came to power in 1997.

A further 20 per cent thought that it was somewhat harder for new ventures to get off the ground now.

SMEs said that poor levels of education (41 per cent) and increased bureaucratic burdens (33 per cent) were the main reasons why starting a business had got trickier.

"Red tape needs to be cut and the education system needs to ensure that children leave school with skills that are relevant to the 21st century economy," explained David Frost, director general of the BCC.

"Politicians of all parties must not take this for granted and see businesses merely as a revenue stream to fund their spending."

Recently, the BCC published figures which showed that British businesses have spent £38.9 billion dealing with government red tape since 1997.

 

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