Bureaucracy crushes small and medium companies

Small businessmen spend about one month per year on red tape. This costs them €1,651.

Tax returns, illustrative stock photoTax returns, illustrative stock photo(Source: Sme)

An almost 250-metre long snake made from about 700 sheets of forms and documents small and medium-sized companies need to fill in and deliver to state bodies each year meandered via the streets of the Old Town on September 29. Representatives of the economic think tank INESS made the snake to demonstrate visually what a burden existing legislation puts on small and medium businesses (SMEs).

Based on the INESS’s Bureaucratic Index, a small entrepreneur in Slovakia spends on average 164 hours per year in order to meet 78 obligations. Compared with the previous year, the index did not change significantly when it decreased by only one hour and one duty.

“This is not a completely gratifying result,” said INESS analyst Martin Vlachynský when introducing the index for 2017, adding that they have registered an increased interest from the side of the Economy Ministry to actively solve some problems of entrepreneurs.

The Economy Ministry responded to the index by saying that there are issues that can be solved by changing the systems, but that such changes require more time while these pertain not only the Economy Ministry but also other ministries, for example the Environment Ministry.

“I reiterate that there are things that can be improved and we are heavily working on them,” said Economy Minister Peter Žiga.

International Bureaucracy Day

INESS choose to present the latest index on September 29, the birthdate of economist Ludwig von Mises, author of the book Bureaucracy.

“This is why we, along with foreign partners, choose this day to be International Bureaucracy Day,” said INESS analyst Richard Ďurana. “It should remind people of the time lost by paper work.”

The rest of this article is premium content at Spectator.sk
Subscribe now for full access

I already have subscription - Sign in

Subscription provides you with:
  • Immediate access to all locked articles (premium content) on Spectator.sk
  • Special weekly news summary + an audio recording with a weekly news summary to listen to at your convenience (received on a weekly basis directly to your e-mail)
  • PDF version of the latest issue of our newspaper, The Slovak Spectator, emailed directly to you
  • Access to all premium content on Sme.sk and Korzar.sk

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

Slovak skier Vlhová dominates parallel slalom in St Moritz

It is her first victory in this World Cup season.

Slovakia's Petra Vlhová celebrates with teammates at the end of an alpine ski, women's parallel slalom World Cup in St Moritz, Switzerland.

This is not even the end of the beginning

Somehow Boris Johnson sold himself as the least tiresome.

The UK is like a flatmate who promised to move out, but just never leaves. In the meantime, they keep stealing beer from the refrigerator while complaining about how it tastes.

Slovak wines do great abroad, but inspectors see them as unfit at home

Slovak legislation does not recognise orange and cloudy wines. As a result, inspectors remove them from the shelves of stores in Slovakia.

Michelin-starred restaurants buy Slovak wines while inspectors in Slovakia remove some of them from the shelves of stores

Economy minister: A gas crisis may come after the New Year

Slovakia will probably have to use all measures possible to secure supplies.

Gas storage facility in Gajary.