SBA Report on Regulatory Cost
August 10th, 2007The SBA commissioned regulatory cost research to provide analysis of what the cost of compliance with regulatory requirements imposes upon small business.
The report finds that it costs small business $7,647 per employee to comply with federal regualtions. These are costs that otherwise could be used to increase employee pay, hire new employees, compete with greater competitiveness in a global economy.
Small businesses are the driving force of new job creation, accounting for over 70% of all new jobs created. The burden of regulatory compliance is placing this economic engine in jeopardy. The report asks the questions about whether this economic engine can possibly survive.