European entrepreneurs challenged by high administrative burdens
55 percent of small businesses spend more than 40 percent of their time on administrative tasks, a new survey shows.
Small businesses and entrepreneurs represent 99.8% of all active businesses in Europe, and are responsible for 85% of new jobs created on the continent in the last five years.
Visma, the leading provider of mission-critical software to Europe’s SMBs, celebrates World Entrepreneurs’ Day by launching a new study focusing on this veritable backbone of Europe’s economy.
What are the most pressing issues entrepreneurs face? And what is truly motivating them to keep pushing forward?
In partnership with Kantar, we asked 2,000 entrepreneurs and business owners across the continent, and here are some highlights from their answers:
Passion and autonomy: The primary reason for respondents to start a business is to pursue a passion (19%), followed by the desire for greater work autonomy (17%) and financial independence (14%).
High administrative burdens: 55% of respondents estimated that they use more than 40% of their time on administrative tasks. 11% reported this share to be more than 80%. Meanwhile, 64% of respondents considered it challenging to understand the governing rules and regulations for their business.
Challenging macro: Nearly half of the respondents view the state of the economy as the most challenging external factor for their business. For the upcoming year, 46% of the respondents identified growth as their primary focus, while 13% aim to enhance their business efficiency.
“Crucial role”
As proud champions of entrepreneurial spirit, Visma has developed an extensive ecosystem of products and services designed by entrepreneurs, for entrepreneurs. Today, the Group supports more than 1.7 million European small businesses across over 20 countries with more than 70 local products.
“All big companies start from small. At Visma, we understand the crucial role all stakeholders in Europe play – from financial institutions to research centres to multinational corporations – in nurturing and supporting small businesses. These companies contribute to building a more flexible and resilient Europe, a feat that deserves collective celebration”, says Ari-Pekka Salovaara, Segment Director for Small Business at Visma.
The adoption of digital accounting tools remains moderate among small businesses, with only 36% of respondents stating that they use accounting software. Of this group, 54% reported that their time spent on accounting was reduced when using professional software.
“We recognise the transformative power of cloud software, artificial intelligence, and other technologies in equipping small business owners with the tools they need to succeed. We are also attentive to shifts in regulations, including the introduction of e-invoicing, aimed at enhancing the efficiency and competitive edge of SMBs in a global economy. Our mission is to facilitate this transformation and work closely with our partners, clients, and employees across Europe”, says Salovaara.
Read more about the survey by clicking here.
For more information, please contact:
Lage Bøhren, Director of Communications at Visma, +47 921 57 801
About Visma
Visma is a leading provider of mission-critical cloud software, with revenue of € 2.4 billion in 2023, more than 15,000 employees and 1.9 million customers across Europe and Latin America. By simplifying and automating the work of businesses and organisations of all sizes, we enable a more efficient and prosperous society. Visit us at visma.com
