Irish SMEs view red tape as a 'bigger concern than credit'

Growing small businesses across Ireland view government-controlled red tape as more of a concern than their lack of access to credit, according to new research by software firm, Big Red Cloud.

Compliance, taxation and other regulatory burdens are rated the biggest challenges faced by Irish SMEs, with access to credit and a lack of government support next in line.

Marc O’Dwyer, chief executive, Big Red Cloud, said: “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 per cent of SMEs point to government-controlled issues of taxation, regulation and 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 businesses 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.”

The report highlights significant differences between what start-ups and more established SMEs consider to be the biggest challenges to their business.

For almost half of all start-ups, access to credit remains their biggest concern. However, the survey also points to fears around the consistently high rate of capital gains tax and the strict rules governing the Employment and Investment Incentive Scheme.

Date published 14 Mar 2016 | Last updated 14 Mar 2016