Administrative barriers are obstacles created by the state that prevent enterprises from developing. In the conditions of the modern economy it is difficult to find a solution to problems, but there are ways out of situations where small or large businesses cannot cope with restrictions. The so-called obstacles do not allow trade to pass through the “barriers”, which are high taxes, the economic principles of monopolies, etc. Therefore, to solve and remove obstacles, you need to know the “walls” that can be broken through by decisions. Difficulties need to be identified from the perspective of a small business that operates in trade, economics, and other commercial areas.
Problems of our time: why is the business not developing?
Each goal of a small business owner is simple: to improve their business processes by offering competitive services to customers or products to consumers. However, small enterprises often lack the resources that large corporations usually have. But each large corporation began its journey with a small one, so the problem of administrative barriers is being addressed. There are several ways to predict them in advance in order to avoid difficulties in the future. The main problem has always been and remains a barrier called "workflow."
An ever-growing bunch of documents is too familiar an image for many small business owners. These administrative barriers are permanent employment and work with documents, papers, which are time-consuming. Instead of developing, the company’s staff is passionate about sorting and filling out the product range, distributing securities.
IT Resource and Innovation Barriers
The leaders of large firms are not protected from the need to solve everyday operational problems. IT directors are often criticized for spending too much time processing data and not enough in areas that add value to the firm itself. Some experts cite the Pareto principle, where 80 percent of the consequences come from 20 percent of the causes. The 80/20 Rule is a principle that makes management aware that the efforts of enterprises can be wasted. Therefore, it is important to understand that lowering administrative barriers will always be pointless if you direct the costs to the result, rather than its causes.
Bureaucracy always causes many problems to small and large enterprises. Business in the industry, according to analysts, should attract more resources than seek solutions to eliminate small stagnations. While they will stop the matter, management will develop the other side of the business. This will create more opportunities in times of crisis, especially when it comes to transferring projects from paper to electronic and virtual media.
Mobility Issues: Administrative Barriers to Entrepreneurship Today
Instead of messing around with paperwork, small business owners can use mobile cloud computing to enable employees to receive and update information on the go.
Digital conversion should also be used in offices where the bulk of the work is concentrated indoors. This will result in a faster exchange of information between units. By creating electronic versions of your records using new printing technology, you can completely control the processing of business information. And in this case, administrative barriers are just temporary difficulties that will arise in the process of improving the supply of innovative solutions.
To completely get rid of them, you need to not only focus on problems, but also act towards the development of technology. Lowering administrative barriers can be achieved by exploring larger business practices, introducing new technologies, and adopting digital transformation. This can significantly reduce the time spent on long-term administrator tasks.
International Trade Issues: Strategic and Regulatory Issues
Barriers to regulation and standards include a wide range of practical methods, ranging from bureaucratic delays in processing applications for permits, political squabbles, “headaches” in infrastructure and unethical business practices. The concept of reducing administrative barriers and increasing accessibility is to shorten the path in the production of goods or the provision of services. The seller is always in contact with the buyer, which means that it is necessary to create conditions for the company to interact with the end user.
When trying to enter the international market, some exporters are faced with unnecessarily cumbersome rules and procedures for entering a foreign market. If these procedures are arbitrary and remain at the discretion of customs officers, they become barriers to entry into the market.
Customs Conflicts as a Delay in Business
Similarly, voluminous and complex document requirements and excessive delays in customs clearance due to human and technical factors are non-tariff barriers. For many companies, the requirement to provide the same documentation to multiple agencies in one country greatly contributes to the cost of international trade.
Such trade administrative barriers are a “hole” in which almost everyone who is trying to capture the market falls into. To solve problems that cannot be circumvented, it is worth learning methods to deal with one type of barrier. Having done this once, you will not meet them again.
Administrative barriers and accessibility of services in business: solving the urgent
For many enterprises, the most serious obstacle to growth is not a bad sale, financing or fierce competition, but often the business itself! And you need to understand that its construction is minimalism. Large companies, as a rule, are founded for a long time, with the exception of start-ups that go on emergency popularity.
The concept of reducing administrative barriers is to minimize production costs. Almost all small in size, but large-scale companies in the territory work on re-purchase and resale. It takes time to create a small and large business.
Strategies for quality growth with small amounts of investment
Here are a few strategies that can help overcome some of the common barriers to growth experienced by many small businesses:
- Watch the growth rates. Before embarking on any growth strategy, step back and take a look at some key business indicators to decide if you are really ready for this growth.
- Are you successful in the current market and want to open a new place? Are you going to make a deal with major suppliers and sellers? Full sales? The success of product development opens the door to new opportunities - you need to work on the ultimate goal, which falls into the hands of the client.
These are all important indicators that will stimulate growth and should be constantly monitored so that you can effectively prepare for a new scale of work. Study conversion rates and market trends every day.
Survival Strategy: How to get around the barrier and grow in the eyes of a competitor?
Reinforcing any growth strategy must be accompanied by a deep knowledge of where you stand up against competition. A simple SWOT analysis, which is reviewed quarterly, can help you determine:
- Where are you in relation to your competitors.
- What are the areas of opportunity.
- Can you use your strengths and weaknesses.
This will give you a good idea of any threats to your growth and help you develop a plan to eliminate or compensate them. Then look at your market - your potential customers. Do some market analysis to find out how your customers see your business, what they see in the competition that drives them to buy.
Sustainability of business - taking root in the bottom of commerce
It is not necessary to stand on one’s feet for years to begin to develop and to focus on other cities and countries. A business can immediately “shoot” and also sink to the bottom. The main thing is to understand whether it is worth going with the flow, or is it better to establish your support for returning to them when you have to rise again and start all over again. And this is possible, since cyclicality in the economy is a stable unloading.
And here are some ways to differentiate yourself as an individual entrepreneur or major owner of a corporation:
- How is your product marketed in relation to your business?
- Why does a customer buy from you, not from them?
- How do you see the ratio of goods to your business?
- How does a product describe the essence of your business?
Answers to these questions will help you see your strengths, use market opportunities and carry out a tactical plan in order to advance in areas that you did not “feel” for your competitive skills.
In the pool with a head or risk assessment?
Removing administrative barriers without risk and force majeure is impossible. You always need to sacrifice something. If there is one thing that a manager or business owner has noticed as a barrier, you always need to anticipate and manage risks. Look ahead - what variables can happen that could jeopardize or damage your growth plans? It can be:
- supply chain problems;
- recruitment and training problems;
- competitive activity;
- cash flow or patent infringement.
Include them in your SWOT analysis and develop a plan to prevent or solve any problems. In Russia, administrative barriers are a bigger problem than taxes and high excise tax rates. You always need to act according to a plan, in which there is an alternative solution to the issue. For example, you have a daily work plan, a hiring plan and a marketing plan, in each of which you will find tactics for using your business resources to achieve your strategy.
Innovation - an unknown business or lack of growth in business?
There are innovative enterprises that are forced to radically change the industry and, as a rule, reward venture capitalists and founders when they succeed. To this end, the state is launching new projects where large sums of money are being invested. It is all about financing and encouraging universities to develop incubation programs for such innovations within their institutions. Such innovations and the development of special schools can be a huge contribution to education if this idea is successful as a business. If you immediately educate future entrepreneurs how to overcome administrative barriers and solve complex issues, business will succeed in all circles.
Is the role of government always on the sidelines? Who intervenes in the life of “children”?
In all cases, the government should do everything possible to remove the financial and legislative barriers that make it difficult for small business owners to finance and manage their fledgling enterprises. Some private foundations sponsor enterprises and try to reduce the number of obstacles that must be cleared by the companies themselves trying to get out of the control of the authorities.
Small business is the lifeblood of the economy, so everything the government can do must be decided at the regional level. Then, economic growth and business development in the country will play a major role in GDP revenues and other economic indicators.