THE major frustration facing entrepreneurs in the North West is the rising tide of red tape.

And firms are also exasperated at the amount of time they have to spend to cope with new legislation, according to the regional results of a survey by the Federation of Small Business.

Dealing with new European legislation is particularly hindering North West business growth, according to the statistics.

The survey, called Barriers to Survival and Growth in UK Small Firms, was carried out independently by Strathclyde University for the Federation, the largest lobby organisation representing UK self-employed and owners of small businesses.

Eight out of 10 small business owners in the region highlight new laws and their complexity as a major obstacle to business expansion.

"Thousands of our members in the North West tell us they want to expand their businesses, but they are being held back by a variety of barriers," said Paul Henly, regional policy officer in the region for the Federation.

"Small business is where the new jobs are going to come from and so it is vital that they are not held back by unnecessary bureaucracy and time-wasting red tape."