Red tape hindering business growth - survey
Red tape constricting New Zealand businesses as they seek to expand has been identified as the biggest concern in a recent survey.Last year respondents to the Grant Thornton Business Report, which looks at areas of constraint, said they were most concerne
Red tape constricting New Zealand businesses as they seek to expand has been identified as the biggest concern in a recent survey.
Last year respondents to the Grant Thornton Business Report, which looks at areas of constraint, said they were most concerned with the shortage of orders.
The survey canvassed more than 7400 people involved in medium and large private businesses across 36 countries.
One third of New Zealand businesses picked regulations, bucking the international trend which still saw reduced demand for products and services as the tallest hurdle.
Peter Sherwin, of Grant Thornton NZ, said the result was surprising as the National Government had been expected to make life easier for businesses.
"Last year the hindrance of red tape to businesses was overshadowed by the bigger picture but this year it's back as a leading irritation, which is a major disappointment in that nothing has changed - even with a far more business savvy government.
"Its a real disincentive for entrepreneurial companies, which actually need a more simplified system in which to operate. Instead we just get more red tape."
He said legislation such as the Emissions Trading Scheme left businesses confused and struggling to understand what was required of them.
"What does it actually mean for them? With increasing red tape comes confusion and the need to better educate the business community.
"I think what we need is a total refresh of what we are trying to achieve in New Zealand. What do we want to support, nurture and grow?"
Other concerns highlighted in the survey were the availability of skilled labour and shortage of working capital.
Globally businesses showed increased optimism towards the availability of finance compared with 2009.
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