The majority of small and medium-sized businesses in the UK believe that the country is not friendly to their firm, according to research, conducted by the Institute of Chartered Accountants in England and Wales (ICAEW).

The data revealed that while the overall perception of the regulatory and taxation environment has improved, two thirds of small businesses feel that the UK is 'not business friendly'.


The government therefore needs to urgently start setting out how it will make the UK a friendlier place to do business
Six out of ten business owners highlighted employment tax as the major obstacle to growth, while employment legislation, tax changes and health and safety regulations were also frequently identified as a hindrance.

"The regulatory tide is starting to recede for larger companies. However, there is a real risk that small and medium-sized enterprises could be left to drown," said Robin Fieth, executive director of the ICAEW, said:

"The government therefore needs to urgently start setting out how it will make the UK a friendlier place to do business."

However, the survey did reveal some positive news with companies revealing stronger growth expectations than last year. Over 80% plan to grow turnover compared to 66% last year, although the average rate of target growth fell, from 11% in 2009 to 10% this year.