Nearly two-thirds of the Midlands' SMEs are struggling to cope with unnecessary paperwork and the burden of overregulation, one of the highest figures of any region in the UK.
Research, conducted by business event organisers B2B Portfolio also suggests that Midland businesses are increasingly concerned with the UK's financial stability, with 51 per cent believing this was negatively impacting on their bottom line.
Managers also indicated they feel their organisation's fortunes would be significantly improved if more time and greater resources were made available to them.
Coventry North West MP Geoffrey Robinson, who has pledged to help small businesses deal with red tape, urged owners and managers to seek advice from local MPs.
He said: "I have been in industry myself and know the implications that piles of paperwork, form-filling and legislation can have on a company. Firms need to provide MPs with genuine examples of the types of red-tape that are hindering them and demand action."
Nick James, managing director of B2B Portfolio, said: "Owners and managers in the Midlands have had a tough time of it lately coping with red tape, unnecessary corporate legislation and economic uncertainty.
"It is certainly very disappointing that the region's bosses are continuing to bash their heads against the brick wall of government bureaucracy. "The increasing burden of legislation affecting the daytoday management of a business means it is getting difficult to keep up with new laws and associated paperwork."