Time-consuming admin tasks for owners of small businesses are holding back the UK economy, according to new research.
Leaders of small firms are spending over 28 hours a week on admin which could be used to grow their businesses and potentially boost the economy by £4.7billion, findings from a report conducted by Creative Auto Enrolment and the Centre for Economic and Business Research (Cebr) suggest.
The report found that 72% of leaders surveyed said that they would like to spend more time growing their business through marketing and strategic planning. Data from the findings showed that small business leaders spend 13% of their day on ‘admin and red tape’.
Small firms account for 99.3% of all private sector business in the UK, as reported by FSB statistics, which reiterates how detrimental extensive admin can be to the economy.
Auto-enrolment of workplace pensions is the latest admin irritation for small business bosses, due to the stipulation that every employee must be automatically signed up to a workplace pension scheme. If not, then the company could be fined anything from £400 – £50,000, depending on its size.
‘Time is precious for all of us but for the heroic leaders of the country’s small firms, time is a commodity they never have enough of,’ David White, managing director of Creative Auto Enrolment, said. ‘Our research shows they are frustrated by the tasks that are taking away from their primary focus – growing their business.’
Mr White further suggests that while the introduction of workplace pensions will make a difference, they shouldn’t obstruct business growth as yet another time-consuming admin task:
‘With auto enrolment taking each company up to 103 man days to implement, small businesses must find a solution that takes the burden of auto enrolment away, allowing them to focus on what’s important – running and growing their business.’
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