Red tape and lack of investment cash is stopping small businesses from getting bigger in Essex and the East of England, a new survey has revealed.

The Federation of Small Businesses has published the findings of the survey carried out on its behalf in the East of England and, under the title of 'Barriers to Growth and Survival', says that 64 per cent of small businesses want to expand but cannot.

The survey, carried out by the University of Strathclyde for the FSB, included 1,300 business owners and found the levels of dissatisfaction with various aspects of their business varied.

Not surprisingly 74 per cent were unhappy about the level of bank charges, and less than 10 per cent were satisfied with government support services.

While 66 per cent were dissatisfied with road networks in the region, a staggering 86 percent were bitter about red tape, or the complexity of government legislation.

Essex Regional Organiser for the FSB, Terry Taber, said the survey results differed from some other surveys which showed a majority of owners having no plans for business growth.

''The results show that the majority of respondents want to grow their businesses. It is often said of the SME sector that high growth businesses are restricted to about four per cent of the small business population, yet the percentage of respondents that want to expand substantially totalled over 15 percent,'' he added.

Mr Taber pointed to other results of the survey, such as the cost of bank and loan finance and that 31 per cent were unhappy about the lack of venture capital.

''The survey results show that a potentially large number of firms in the East of England are being prevented from achieving their desired growth rate.

''Given the fundamental importance of the small business sector to the UK economy, it is essential that these barriers to growth are addressed as a matter of priority,'' he urged.

Last week the FSB joined other business leaders during the first National Business Day to debate the impact of red tape on business and to put together a ten-point plan aimed at reducing it, to present to the government.

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