£4.7bn of SME revenue lost to red tape » SMEInsider

£4.7bn of SME revenue lost to red tape

A new report shows that small businesses could have added nearly £5bn to the economy if not for administration duties costing employers valuable time.

Small businesses are currently dealing with added administration tasks because of the government enforced auto-enrolment process.

Companies who employee less than 57 staff members have to provide their employees with a standard workplace pension. 95 per cent of businesses in the UK employ less than 50 people.

According to a survey produced by Creative Auto-Enrolment and the Centre for Economic and Business Research (CEBR), auto-enrolment takes 103 days to complete and is proving to be a strain on the infrastructure of small businesses around the country.

The survey took 512 businesses into account and found that running a small business has been extremely stressful when dealing with admin tasks. Business owners stated that over half of their working week is spent on dealing with red tape.

The CEBR revealed that £4.7bn more could be raised each year if small businesses devoted just 10 per cent more of their time into improving their business. Small business owners are resigned to doing their administration tasks themselves, so struggle to focus on their company’s growth.

‘‘In 2015, tens of thousands of employers will reach their staging date over the course of the year. Small employers don’t have in-house experts in pensions, payroll and data management, and may not be able to afford the expensive services of external advisers,’’ said Pete Glancy, head of industry development at Scottish Widows.