Small businesses (SMEs) are struggling to cope with the volume and complexities of EU legislation, according to a report published by Chemical Watch.
The report states that complex regulatory frameworks, such as REACH, which by their nature demand constant updates, are hampering innovation, particularly from SMEs who have limited resources to ensure compliance.
Indeed, the number of new launches since the implementation of REACH has dropped from 250 to 300 in the 1990s to under 200 in the past decade. However, it is also worth noting that previous legislation had a lower notification threshold of 10kg.
What’s more, the lack of harmonisation, with member states also ushering in their own national legislative framework, has led to a lack of transparency across the EU, further complicating compliance procedures for companies.