'Clearer definition' of micro businesses required

Date: 24/11/2011

Small enterprises purchasing their first 0800 phone numbers and just starting out may agree they need a different set of regulations to larger firms.

The All Party Group for Micro Businesses - a collective of MPs - believes more targeted legislation and support should be created for the very smallest companies in the UK, the BBC reports.

Although these are the enterprises that are creating jobs, they often have to deal with unnecessary red tape that is aimed at more sizable organisations.

The MPs claim the current EU definition of a micro business is too broad for Britain.

A report from the group stated: "The consequence of this lack of definition has been an inability of government to create policy tailored toward [micro businesses]."

This collective is not the only organisation calling for regulatory changes from the government for enterprises.

The British Chambers of Commerce recently said there should be changes to the Tribunal system in order to encourage job creation.