Small businesses face barriers to investment including access to funding, energy costs and the typical red tape. With a goal to removing these barriers, the Ombudsman Kate Carnell noted that banks who claim lending is at a high point are not taking into account those who can’t borrow because they don’t have property. Some of the means of easing the burden on SME investment includes the plan to reduce red tape by streamlining regulations so that one form can apply to many facets of compliance.
- A shift in bank lending patterns, requiring traditional backed mortgages, has restricted funding for many small businesses.
- Many young entrepreneurs turn to family for the funding they need to launch their businesses, but this can wipe out savings.
- Governmental regulations are also hindering a number of small businesses; burdening them with compliance costs.
“Regulation wasn’t removed, but was instead sped up and made invisible. Information provided once was used to automatically complete forms in other areas of bureaucracy.”