SME compliance costs.(News)(small and medium sized enterprises)(Survey)(Brief article)

Small and medium-sized enterprises (SMEs) in the UK are spending 2bn [pounds sterling]/ year on health and safety compliance, a new report indicates. The UK lobby group Forum of Private Business calculated costs based on a June survey of its 6000 members. The figure was significantly higher than the cost of complying with tax law, 1.8bn [pounds sterling]/year, environmental and waste regulations, 780m [pounds sterling]/year, and equality and diversity rules, 370m [pounds sterling]/year. In total, SMEs spend 9.3bn [pounds sterling]/year on red tape, equivalent to 2100 [pounds sterling]/ year/company.

According to the group, 10% of respondents complained of 'stress or worry caused by inadvertent failure to comply with regulations', and 6% said the administrative burden of health and safety regulations had a 'de-motivating' effect.

The 1.2m UK businesses that provide compliance support services to SMEs spent 2.6bn [pounds sterling] in the past year.

In June, the UK government launched a 1bn [pounds sterling] innovation investment fund to help technology-based small businesses (C&I 2009, 13, 5). In particular, it is hoped the money will plug what has become known as the equity gap: a shortage of investments ranging from 250,000 [pounds sterling] to 2m. [pounds sterling] The government will invest 150m [pounds sterling] alongside private investment, which it says could leverage enough for a fund of up to 1bn [pounds sterling] within the next 10 years.

But the recession is creating problems. Figures from Axa indicate that business-related crime increased 10% year-on-year for H2 2008. The Federation of Small Businesses has called on police to make businesses a higher priority, citing a dramatic increase in 'recessionary' crime, such as burglary, staff intimidation, arson and assault.

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