The fact that Swedish companies´ regulatory burden was so frightening was a surprise. Companies in Sweden, large and small should in addition to what they are good at follow the 1.200 laws, 2.200 decrees and 8.100 rule regulations and guidelines that exist.
In addition to that Swedish entrepreneurs must act as lawyers during their free time, 94 million forms which 90 Swedish authorities requested annually must be filled in.
So on average, each respective authority must handle one million forms a year. In today's IT society, these figures seem totally absurd and unreal.
Of course, there is a cost for this bureaucracy, and these figures are also chocking.
The costs for Swedish companies, only to administer the governmental framework, are estimated to about 96 billion kronor per year according to the Swedish Agency for Economic and Regional Growth. In addition, there are costs for financial consequences (taxes as a result of rules) and material consequences (investments as a result of rules).
If we take those billions and breaks down into an example of business, it may look like this:
The Chemical Company in Bromma Stockholm.
The Chemical Company in Bromma is an environmental company with 20 employees. The Regulatory cost is the entire 6 million SEK, i.e. approximately 298 000 SEK per employee each year. In addition to taxes, the company has significant costs for supervision and permission.
How can this be allowed to continue year after year?
This is a question we must ask ourselves as entrepreneurs.
The present Government is trying to reduce this burden, but it takes time. For example, the Government wants to abolish the audit requirements for small companies, but the Government is unsure.
The Swedish Tax Agency and the Economic Crimes Bureau are concerned that tax evasion will increase and through various referrals delayed the introduction of that rule. To their reasoning should be added that 25 out of the 27 countries in Europe have no audit requirements, but obviously you cannot trust Swedish entrepreneurs.
This demonstrates the attitude that exists in different Swedish authorities towards companies in Sweden that actually represents the nourishing sector.
The authority's reasoning reminds me of my military service within the Engineer troops. Our friend Anders overslept at the wrong time which resulted in that that the whole dormitory was chopping wood that next Friday night. This is many years ago, but the attitude seems to still exist.
Tony Harken