Regulatory Laws

The regulatory laws that are being implemented today are not fair for small businesses. A great deal of regulatory laws, which small businesses do not play a part in developing, cause small businesses to fail because of strict guidelines. According to Tom Sullivan, more often small businesses are focused on deadlines, heavy workloads, and trying to comply with the wishes of the administration in power. There is not enough attention paid to how a law will affect a small entrepreneur.

A recent study funded by Sullivan's office showed that firms with fewer than 20 employees spend about twice as much on regulatory compliance per employee as the owner's larger counterparts (Skrzycki, 2003). According to a government advisor, most regulatory laws that are designed to cut regulation and support small businesses are not worth the paper they are written on. The Small Business Council has demanded an overhaul of rules aimed at forcing civil servants to consider the impact of new laws on businesses. Recent rules do not take in effect the cost that a small business will occur.

The government needs to be aware of the impact that legislation has on the costs of small business. (Judge, 2004, p. 48) Conclusion Litigation affects small businesses in America in a variety of ways. The constant rise in insurance premiums by litigation lawsuits has caused small businesses to stumble. The insurance premium cost is second only to health care insurance cost. Based on this research, other contributing factors which continue to be a challenge for small businesses are minimum wage regulation, regulatory laws, and tax laws.


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