The proposed equalities bill could be "a bureaucratic nightmare for small businesses", one industry leader has warned.
According to David Frost, director general of the British Chambers of Commerce, the legislation outlined in the document does not look like it will simplify the law as the government had promised.
Mr Frost also indicated that many of the measures proposed are irrelevant to BCC members.
He said: "What the 100,000 businesses we represent tell me is that there is a limited number of good people out there and they want to recruit and retain the best people for the job irrespective of their gender or race."
The bill will also make tendering for public sector contracts more complicated as well as putting more emphasis on positive discrimination in the workplace neither of which is likely to "make life simpler for anyone", Mr Frost added.
Last week, Phil McCabe, media and publications officer for the Forum of Private Businesses, claimed that tax issues and the rising cost of fuel mean SMEs in the UK are "currently facing a toxic combination of problems".
