This study for Sage looks at the cost to small and mediumsized enterprises of administration tasks, including both operational and regulatory requirements. Analysing a survey of over 3000 companies across 11 countries, we consider whether technology can be used to reduce this burden, and how governments can encourage its take-up.

The report examines the impacts of administration – including that caused by regulation – on SMEs, particularly looking at how much effort and cost these companies have to spend to comply with requirements. Across the eleven countries studied, Sage found that the size of the administrative burden varies considerably, but on average involves around 120 man-days and USD 50,000 per company. This represents a significant amount of manpower (around 5% of the total for an average company) and a large cost. By reducing this effort, enterprises could be expected to be more productive.