The ability to grow a business 'can be a problem'

Date: 28th March 2008

The ability of UK business owners to grow their companies is an area of "concern", according to the Federation of Small Businesses (FSB).

The body claims that while many business owners are successful in starting their companies, it can often be difficult to expand.

FSB spokesman Simon Briault said: "They tend to run into more difficulties due to the amount of employment law they have to deal with and the regulation and red tape that comes with expanding a business and employing more staff."

Mr Briault noted that the latest start-up figures showed an increase in the number of UK businesses being launched.

A recent survey by the Department of Business Enterprise and Regulatory Reform, found that 72 per cent of businesses in London intend to expand their operations over the next two to three years.