NEW START // ISSUE 6 // 07 NEWS IN BRIEF

RED TAPE COMPLIANCE INCREASES 74%

FAMILY

BUSINESSES BETTER PLACED TO RIDE OUT RECESSION

MARTIN STEPEK

FAMILY BUSINESSES HAVE MORE CHANCE OF SURVIVING THE RECESSION, ACCORDING TO ONE OF THE INDUSTRY’S TOP EXPERTS.

Martin Stepek, the chief executive of the Scottish Family Business Association (SFBA) said that family businesses will be instrumental in Scotland’s economic recovery as they are better placed to ride out the recession.

In Scotland, 69% of SMEs are family-owned. They are responsible for roughly half of the GDP created by private enterprise and employ approximately 900,000 people - 50% of the private sector workforce.

Stepek said: ‘Family businesses are better-placed to ride out recessions because, being inherently more cautious in good times, they have the reserves and enterprising abilities to cope during difficult economic times.

‘While PLCs are shedding jobs, family owned firms remain focused on the continuation of a legacy, providing financial

security for family members and maintaining jobs in their local community. With improved access to education, training and professional advice specific to their distinctive model of business, family firms will be the key to a strong, stable, and ethical foundation for Scotland’s economic recovery and this is where we should be investing our economic development strategies and resources.’

Speaking ahead of New Start Scotland - the country’s largest business support event - Stepek says the SFBA has experienced a noticeable increase in enquiries over the past few months as more entrepreneurs seek out advice to survive the credit crunch.

Event organiser Ceri Rogers said: ‘As family businesses employ 50% of the private sector workforce, it is crucial that they receive the right level of support.’

The cost of complying with red tape in the UK has increased by 74%, according to a survey by business group, Open Europe.

The findings claim that the cost of complying with rules increased from £16.5 billion a year in 2005 to £28.7 billion pounds in 2008, despite the launch of an agenda of regulatory reforms by the government four years ago.

The report, which drew up over 2,000 impact assessments published by government departments, found that European Union legislation was the reason for nearly 72 % of the annual cost of regulation. ‘The government effectively has control of less than 30 % of the annual cost of regulation’, claim Open Europe.

SCOTTISH FIRMS MISSING OUT ON £5 MILLION SAVINGS

Scotland’s businesses are losing out on savings of up to £5 million a year by not reviewing their water supplier, according to industry regulators.

A report by the Water Industry Commission for Scotland (WICS) found two thirds of non- domestic customers have yet to review their water and sewerage provider despite the launch of a competitive market last year.

The body said it means millions of pounds worth of savings were not being realised.