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Press release Companies wish more Trust from the Government

A survey by IfM Bonn Reveals Concrete Measures for Reducing Bureaucracy

Bonn, March 25, 2024  Four out of ten entrepreneurs feel restricted in their entrepreneurial autonomy due to current bureaucratic requirements. Around a quarter of them consider it important for entrepreneurial expertise to have a stronger influence on legislative processes, so that regulations can be better tailored to the realities of businesses. This is the result of a survey conducted by IfM Bonn, in which approximately 850 entrepreneurs provided more than 1,500 suggestions on how to reduce bureaucratic burdens.

Simplification of Legal Requirements and Increased Trust

Nearly every third of entrepreneurs believe it is necessary to simplify legal requirements and expedite approval processes within government agencies. Particularly concerning tax law, building permit procedures, the General Data Protection Regulation, and the Supply Chain Act, they perceive an urgent need for action.

An important aspect of the demanded bureaucracy reduction also lies in the experience that entrepreneurs have had with the relevant authorities: If this experience is predominantly (very) negative, they desire more trust instead of control. If it is positive, they primarily advocate for simplified legislation and faster approval processes.

Nevertheless, the majority of all entrepreneurs are willing to contribute their expertise to the bureaucracy reduction process. "However, bureaucracy reduction is a highly complex task that does not promise quick, permanent solutions. Together with entrepreneurs, economic policy can initiate a continuous process that can be continually adjusted and optimized to changing environmental conditions. It is certainly helpful if entrepreneurs, with their practical experience, are more involved in the legislative process," concludes Dr Annette Icks, project manager at the Institut für Mittelstandsforschung (IfM) Bonn.