There are a lot of laws in many different areas that small business owners must always abide by - finances, employee interaction, interviews, contracts and other factors must be regulated. However, keeping track of these requirements at all times can be very stressful and take a toll on firms.
Canadian small business leaders have revealed that keeping up with red tape is one of the worst parts about running a business, the Canadian Federation of Independent Business (CFIB) explained. According to a new survey released by the institution, this is adding greatly to the everyday stresses and productivity decreases within the industry.
Red tape a worry for many leaders
The recently released poll revealed that though regulations affect all companies, some must dedicate more money and time to comply with the rules, causing undue stress. For instance, the Regina Leader Post reported that 80 percent of regional Canadian farmers list red tape as the biggest irritation within the management of their enterprises. In general, small business owners would hold regulations as the second-most concerning element to running their firms, after taxes.
Fifty-five percent of leaders also say that the burden of red tape is growing each year, while CFIB administrators noted that this often leads to conflicting rules, which can be confusing and exceedingly stressful. Owners have to abide by federal, institutional, provincial and local laws when running their companies.
Moreover, CFIB found that Canadian business leaders think that the costs that owners have to spend to comply with government regulations could be cut by approximately 30 percent, equating to $9 billion saved annually.
"This is exactly what we mean by red tape. Not the regulations that protect Canadians, but those rules, processes and government inefficiencies that place undue cost on businesses without serving any purpose," CFIB executive vice president Laura Jones explained to The Beacon News.
Help for those who don't know the rules?
There are many ways for those who aren't familiar with some of the regulations to find help. For instance, small business owners can often turn to Small Business Association branches and professionals in their areas, as well as look for guides on the internet regarding the laws they have to follow.
In other cases, technology can be used to ensure compliance. For example, accounting software can help make sure companies' finances are in order, are being reported correctly and are filed on time, among other benefits.