A new survey has revealed that UK small business owners spend an average of four days per month on internal business administration, while 55% believe the amount of admin they face is stunting the growth of their companies.
In addition, a worrying 67% of owners said they felt their administrative burden was playing a major role in stopping them from focusing on the primary purpose of their business, according to asurvey published this week by the Federation of Small Businesses (FSB).
FSB commercial director Dave Stallon said: “It is a common frustration amongst owners of smaller companies that they are unable to find the time to work on their real business activities because they are too busy completing administrative tasks, however essential they are.”
Earlier this year the FSB called on the government to include the “onerous” tax system in its review of red tape.
Excessive compliance burden
A deeper look at the survey shows that 76% of small business are spending more time than they feel is necessary on compliance. Specifically, that meant dealing with issues including tax, workplace pensions and employment law as well as insurance, accounting and health and safety matters.
In practice, that means that the average SME small business manager spends only eight hours and 50 minutes on average per month on developing new business, a figure that represents around one-quarter of the more than 33-plus hours they spend on admin.
Stallon also lamented the lack of action on red tape: “The Government has pledged to remove £10bn worth of red tape over the course of this Parliament. FSB welcomes this focus on deregulation, which should free up small business owners to spend more time doing business and creating economic growth.”