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Less is more: light regulation is better for business

14th December 2012

A reduction in red tape can give businesses the freedom they need to grow.

David Turner, Chief Executive Officer

 

 

The Scottish Government has continually underlined the importance it is placing on the soon to be introduced Better Regulation Bill.

Let’s hope it really does take the hassle out business regulation – the complexities of which are, I’m sure, stifling Scottish business growth.

The time that businesses take to negotiate red tape is time that they could be out making a sale. Ultimately, sales create growth, wealth and, in turn, the opportunity to increase employment.

Safeguards should be protective rather than stifling

The public sector procurement processes should be designed to facilitate growth. Of course, it must also have safeguards that ensure public funds are properly distributed. But these safeguards should be protective rather than stifling.

Regulation is a key part of competitiveness and so the Scottish Government needs to continue to work with businesses to ensure the Better Regulation Bill achieves what it sets out to.

The public sector needs to offer more transparency in demonstrating how it is helping business – and the processes for accessing help have to be made simpler.

Help is there. In order to access it, companies need to work with the public sector and build a mutual understanding of how each other’s organisation works. I’d encourage business leaders to knock on the door and then if you’re not listened to – knock the door down.

High growth companies…understand their customer

Companies should be taking more responsibility for their own growth. High-growth companies have one thing in common – they understand their customer.

A lesson we have learned is that all the clues for where a business needs to go are not purely at board level. We have more than 6,000 staff interacting with customers daily – that’s where your real intelligence comes from.

Alongside understanding the customer, growth companies will have the flexibility to adapt and evolve their model to deliver what the customer wants.

The four pillars of reducing cost, increasing revenue, building advocacy and improving the customer experience is the key to growth. Although you can compete on price, you must also compete on value.

 

 

 


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