Half a day per week

Bureaucracy is the biggest “time waster” for entrepreneurs

Small and medium-sized companies in particular are groaning under the many regulations and requirements.

(Bild: ©shefkate - stock.adobe.com)

"We have to put a stop to this bureaucratic madness," appeals WKO boss Harald Mahrer. After all, many entrepreneurs find themselves subject to a control mania - countless records and formal requirements make everyday life more difficult. According to a new study, the average one-person entrepreneur spends half a working day a week on bureaucracy.

96 percent of domestic businesses have fewer than ten employees. They are disproportionately affected by bureaucracy, as the workload is spread over just a few employees. According to a new study by the Market Institute on behalf of the WKO, an average of 9.4 working hours are spent on bureaucracy across all companies. SMEs need a total of 19.3 hours, i.e. 2.5 working days, while EPUs spend half a working day on bureaucracy, but can only outsource these activities to a limited extent and are usually left to deal with them on their own.

(Bild: stock.adobe.com, Krone KREATIV)

Bureaucracy increased for six out of ten in three years
"It is clear that a framework is needed and that a certain amount of bureaucracy is also necessary. But European policy should not unleash a bureaucratic monster on companies from an ivory tower," says Mahrer. Specifically, the lobbyist mentions the new supply chain law. "A joinery in the Waldviertel is sometimes overwhelmed by many of these rules." According to the study, the amount of bureaucracy has increased for six out of ten entrepreneurs in the past three years, while seven out of ten SMEs have to deal with it more.

WKO President Harald Mahrer: "Alongside high labor costs, bureaucracy is the number one issue."

(Bild: Martin Jöchl)

According to the study, many self-employed people would therefore like to see things simplified. 88% consider this to be absolutely essential in order to drive the economy forward. Almost 80 percent see international competitive disadvantages. Tax law costs entrepreneurs the most time, followed by employment and social security law and various publication obligations. "The Americans and Asians laugh at us when they watch Europe regulating itself to death," Mahrer told the "Krone" newspaper.

"General suspicion for entrepreneurs"
He speaks out against general suspicion. "The state should not enslave tens of thousands of decent companies because of a few black sheep." Control is necessary, but tracking entrepreneurs at every step would cost unnecessary resources. With digitalization, a lot can already be recorded on an ongoing basis - keyword cash register. An important step would be to increase the small business regulation from 35,000 euros turnover to 85,000 euros turnover. The limit has not been adjusted for decades. 

The Chamber of Commerce is generally in favor of more flat rates, as they simplify many things. Many entrepreneurs currently need a tax consultant. The information must also be extremely precise when it comes to subsidies. Even more annoying than one-off applications for subsidies, however, are the tasks that have to be fulfilled on a day-to-day basis. 

Many of these requirements come from the European level. Austria has been "gold plating" here for a long time, i.e. overfulfilling European rules. Even more control, even more bureaucracy - Mahrer fears that if the red-white-red bureaucracy wants to outdo the European bureaucracy, entrepreneurs will pay the price in the end.