"In my experience, it is not a simple piece of legislation that causes problems, but the accumulation - sometimes even contraction and sheer amount - of laws that a small firm has to follow," she said.
Sommer called for simplification and cross-referencing of regulations to help "unravel the jungle that legislation has become".
"We are coming to a stage where it is physically not possible for one business owner to ensure 100% that he or she is following every law that may be applicable to them. This is an unsustainable situation, and will result in more and more companies inadvertently breaking the law," she added.
The 'Think Small First' principle contained in the Small Business Act (see EurActiv LinksDossier) must be applied at all levels, according to the ESBA president, particularly at local government level. MEPs should also keep SMEs in mind when amending legislation, Sommer said.
She acknowledged that the European Commission and member states have made significant efforts to cut red tape, particularly for micro-enterprises, but said this must filter down to local authorities.
The 'Better regulation' initiative was a major focus of the Commission during the first two years of the Barroso presidency (EurActiv 21/7/07). However, businesses have been underwhelmed by progress to date, with industry pointing the finger at member states' failure to cut red tape (EurActiv 09/6/07).
Cutting bureaucracy is also a key element of the Small Business Act, which was unveiled in June 2008 (EurActiv 26/6/08).
Regarding financing for SMEs, Sommer said banks must do more to advertise the availability of EU funds earmarked for small businesses. Small-business owners are often unaware that money is available and few SMEs know what practical steps to take when applying for funds.
Access to credit from banks remains a major problem, she said, but the introduction of so-called 'credit mediators' in France and Belgium has helped SMEs negotiate with banks.
In France, credit mediators have helped 8,000 companies access finance, and this has saved up to 60,000 jobs. By contrast, take-up of European Investment Bank funds by UK members of the ESBA has been minimal, according to the association.
