Red tape ‘a bigger concern than credit’ for Irish SMEs

Government-controlled red tape is strangling businesses more so than a lack of access to credit, according to new research.

Taxation, regulatory and compliance issues are the biggest challenges small and medium sized companies face with access to credit and a lack of government support next in line, a survey carried out by software firm Big Red Cloud found.

“There is no doubt that many of Ireland’s business owners are feeling a certain degree of discontent with the lack of Government and financial supports afforded to them when trying to grow and develop their business.

“Far from pointing the finger at the banks for slowing their growth, 66% of SMEs point to Government-controlled issues of taxation, regulation & compliance and a general lack of Government support as the key impediments to job-delivering growth.

“We’ve been through a dark few years and those business that have managed to survive are still reeling from the effects of the downturn but there is also a feeling on the ground that if they have survived the last few years then there is hope. They are ready to grow; they want to push ahead but there are so many obstacles in their way,” said Big Red Cloud chief executive Marc O’Dwyer.

The research highlighted differences in what startups and more mature SMEs consider to be the biggest challenges to their business.

For almost half of startups, access to credit was their greatest concern.

The survey also points to concerns around the high rate of capital gains tax and strict rules governing Employment and Investment Incentive Scheme.

“There is real sense of disillusionment amongst smaller businesses,” Mr O’Dwyer said.