“We must put an end to this bureaucratic madness,” calls on WKO boss Harald Mahrer. Many entrepreneurs are exposed to a control obsession; countless documents and formal requirements make everyday life difficult. New research shows that the average one-man entrepreneur spends half a working day per week on bureaucracy.
96 percent of domestic companies have fewer than ten employees. The bureaucratic burden affects them disproportionately because the efforts are spread among only a few employees. According to a new study by the Market Institute on behalf of the WKO, an average of 9.4 working hours is spent on bureaucracy in all companies. SMEs need a total of 19.3 hours, or 2.5 working days, EPUs spend half a working day on bureaucracy, but can only outsource these activities to a limited extent and are usually left alone.
For six in ten, bureaucracy costs have increased in three years
“It’s clear that there needs to be a framework and there also needs to be a certain amount of bureaucracy. But European politics should not unleash a bureaucratic monster from the ivory tower on companies,” says Mahrer. The stakeholder specifically mentions the new chain law. ‘A carpentry workshop in the Waldviertel is sometimes overwhelmed by many of these rules.’ According to the research, bureaucracy has increased for six in ten entrepreneurs in the past three years, and for SMEs even seven in ten more have to deal with it.
According to the research, many self-employed people would like to make things easier. 88 percent believe this is absolutely essential to move the economy forward. Nearly 80 percent see international competitive disadvantages. Tax law takes up the most time for entrepreneurs, followed by labor and social law and various publication obligations. “The Americans and Asians laugh at us when they see how Europe regulates itself to death,” Mahrer told the “Krone”.
“General suspicion among entrepreneurs”
He speaks out against the general suspicion. “The state should not oppress tens of thousands of decent businesses because of a few black sheep.” Control is necessary, but chasing entrepreneurs every step of the way would unnecessarily consume resources. Digitization means that a lot can be recorded continuously – keyword: cash register. An important step would be to increase regulations for small businesses from 35,000 euros in turnover to 85,000 euros in turnover. The limit has not been adjusted for decades.
The Chamber of Commerce generally advocates more fixed rates, because they simplify many things. Many entrepreneurs currently need a tax advisor. Even when it comes to financing, the information must be provided with the utmost accuracy. Even more annoying than one-off financing applications are the tasks that have to be performed in everyday life.
Many of these requirements come from European level. Austria has been applying ‘gold plating’ here for a long time, which amounts to exceeding European rules. Even more control, even more bureaucracy – if the red-white-red bureaucracy wants to surpass the European one, entrepreneurs will ultimately pay the price, Mahrer fears.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
