Government targets to reduce regulation burden merely “lip service” say SMEs

Published 5th August 2008

Research from Pegasus Software highlights:

SMEs spend on average two months each year on compliance
Legislative landscape set to worsen in next 12 months
Entrepreneurialism hindered by red-tape culture
Economic slowdown biggest pressure in 2008

July 30, Northamptonshire - Government targets for cutting the amount of regulation facing SMEs do not go far enough, according to research from Pegasus Software, a provider of accounting and business software to UK SMEs. The research, which polled 450 SMEs, concluded that while almost half (40%) say that the targets are simply not enough, one in three (30%) believe that the commitment represents little more than “lip service.”

And as one in four admit to spending more than two months of the year focused on researching and complying with legislation, it’s little wonder that innovation is suffering. The majority of those surveyed (92%) believe that excessive red tape hinders entrepreneurialism in the UK.

The majority of those surveyed (84%) believe that technology can help in mitigating against increasing legislation while 10% believe it is a panacea to the problem.

The regulatory burden has worsened in the last year according to 93%, with a further 92% predicting an even gloomier outlook for the next 12 months. When asked about the biggest pressure facing them in 2008, almost half stated the economic slowdown, with one in three struggling to perform too many job roles.

Kevin McCallum, commercial director, Pegasus Software comments:
“It is encouraging that the government is taking steps towards reducing the regulatory burden on SMEs, but these findings highlight that there is still a long way to go. As many SMEs spend several months each year on compliance, at the expense of innovation, there is cynicism that the targets represent little more than lip service.”

“In the absence of an immediate solution, or indeed a crystal ball, it is reassuring that the majority of SMEs recognise that technology has a significant role to play in alleviating the regulatory burden. And with economic slowdown the top pressure point in 2008, it is integral that SMEs utilise the tools available to them to enable them to focus on running their business profitably.”

The research surveyed 450 UK SMEs and was undertaken in May 2008.


About Pegasus Software
Since September 2006, Pegasus Software is part of Infor. Pegasus (www.pegasus.co.uk) is one of the UK’s providers of financial, supply chain management, payroll and HR solutions. Together with business intelligence tools and software for the manufacturing, construction and allied industries, Pegasus prides itself on producing intelligent solutions that deliver the highest levels of functionality to small and medium sized businesses.

Users of Pegasus products are supported by over 120 certified independent experts and business consultants across the UK and Ireland. Pegasus is renowned for excellence in design and flexibility.

About Infor
Infor delivers business-specific software to enterprising organisations. With experience built in, Infor’s solutions enable businesses of all sizes to be more enterprising and adapt to the rapid changes of a global marketplace. With more than 70,000 customers, Infor is changing what businesses expect from an enterprise software provider. For additional information, visit www.infor.com.

For further press information, please contact:

Nina Wainwright
Citigate Dewe Rogerson
Tel: 01604 232223
mailto: nina.wainwright@citigatedr.co.uk