Reported on Wed, 03 May 2006

The message that small firms are overburdened by government rules and regulations has again been restated, but small business managers could take out business loans to make significant investments and move ahead of the competition.

Recent research by the British Insurance Brokers' Association (Biba) found that smaller firms are spending over five per cent of their annual incomes on fulfilling government regulatory requirements, whereas in comparison, the proportion for larger firms is about one per cent.

Eric Galbraith, chief executive of Biba, is again calling on the government to lessen the amount and complexity of regulations that small firms have to comply with.

"What I am flagging up is - as we move forward with the regulations - we need no more rules," he asserted.

Mr Galbraith explained that individual circumstances should be taken into account when deciding the levels of regulatory requirements small firms are obliged to perform.

He concluded: "Market-led solutions should deal with regulation. Market-led solutions are an opportunity for the market, not just the regulator and Biba calls for the market to put in place a structure that will respond to any future issues."

Managers of small firms concerned at the effect of government rules upon their business prospects could use business loans as a way to improve productivity via significant investments.

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