Monday, 2 July 2007

26% of businesses cite red tape as growth constraint

Full Report at Grant Thornton

The Grant Thornton International Business Report (IBR) has found that red tape and regulation is the biggest frustration faced by businesses around the world - for the fifth year running. When asked to rank constraints on ability to expand, red tape was quoted by nearly four out of ten businesses worldwide compared with just two out of ten, or fewer, quoting cost of finance, shortage of working capital or shortage of long term finance. The next most important constraint was shortage of skilled labour, quoted by more than three out of ten businesses.

Top of the red tape table was Brazil (60%) closely followed by Russia (59%), Poland (55%) and Greece (52%). More than four in ten businesses in Germany, Argentina, South Africa, Turkey, Italy, mainland China and New Zealand felt red tape and regulation were a constraint on their ability to grow. The businesses experiencing the least restraints by red tape were from Singapore (16%), Spain (17%) and Sweden (19%).

In the Philippines, 26% of businesses cited red tape. The world average is 38%.

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