Regulatory burden could be reduced for SMEs
RED tape could soon be cut down to size thanks to a new act from the European Commission (EC).
The Small Business Act for Europe aims to improve the policy approach to entrepreneurship by ensuring that small to medium sized enterprises (SMEs) are kept at the centre of policy making.
It proposes that an SME test be carried out on all legislative and administrative proposals emerging from the Commission, common commencement dates for regulations and decisions affecting business and the annual publication of legislation coming into effect.
The Act will also ensure easier access to information and public procurement opportunities as well as and research and development funding.
Energy efficient or green start-ups and SMEs will also receive better support together with incentives for energy efficient businesses and products.
The Act couldn’t have come at a better time according to Leeds Chamber of Commerce.
The Chamber’s annual Burdens Barometer for 2008 currently has the cumulative cost of regulation to business in Yorkshire and the Humber at £4.8bn.
Ian Williams, Leeds Chamber policy director, said that the regulatory burden faced by SME’s had increased in the last ten years, and the resulting costs and pressures to Yorkshire businesses clearly highlighted this.
“To think small first is a positive step by the EC and if all the commitments are met then the Small Business Act might well make a real difference to businesses on the ground,” he said.
But Mr Williams believes that more could have been done.
“Given that the greatest burden for SMEs is complying with regulation and that regulation impacts disproportionately on SMEs (to the power of 10 according to the European Commission) we would have liked to see more concrete and radical measures to improve the quality of existing and future regulation emanating from the EU,” he said.
He added that there was also a distinct lack of targets and deadlines within the Act itself, which would make it difficult to measure any progress made.
Nevertheless, Mr Williams said that the Chamber would be urging the UK government to take up the EC’s invitation to the Act and to report on progress in its National Reform Programme.
