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SBA Report Comes as No Surprise to Small Business Groups

The high cost that small business must shoulder to comply with federal regulations doesn’t surprise the organizations that monitor the health of the nation’s economy and the welfare of its small- to mid-sized businesses.

When a new report from the Small Business Administration’s Office of Advocacy showed that small businesses pay one-third more than large businesses to comply with a host of federal regulations, these groups said it confirmed once more what has become common knowledge in the small business community — small business doesn’t get a fair shake.

But they were unanimous in their agreement with the results and the importance of the role the SBA’s Office of Advocacy plays in its attempts to level the playing field for small business.

Here’s what they told BusinessNewsDaily.

National Small Business Association (NSBA)

“I think they’re spot on,” the NFIB’s Molly Brogan. “They serve as an important regulatory watchdog for small business. We’ve been very concerned about this issue and have been monitoring it for a long time. Legislation on regulation must take into account the effect is has on small businesses.”

Small Business & Entrepreneurship Council (SBE Council)
"This latest estimate of regulatory costs not only confirms previous studies in showing that the costs of federal regulations fall particularly hard on small businesses, but new methodology reveals that these costs are even more burdensome than previously estimated, “ SBE Council chief economist Raymond J. Keating said. “The cost burdens are particularly heavy for small firms when it comes to environmental and tax rules and regulations. Unfortunately, President Obama and the current leadership in Congress have chosen to ignore this regulatory reality by piling on with even more regulation. This hyper-regulation does the most damage to the small businesses that the economy relies on to spur innovation and create jobs."

National Federation of Independent Businesses (NFIB)

“It’s more bad news for small business,” said Susan Eckerly, NFIB’s senior vice president of federal public policy.  “It just shows the gap is widening in terms of the burden on small business. Complying with tax paperwork and regulations is already a huge burden. Combine that with the increasing cost of compliance and you have a double whammy for small business.”

Small Business Majority (SBM)

“It’s a naturally occurring problem because small businesses don’t have the economies of scale enjoyed by large businesses,” said John Arensmeyer, SBM’s CEO. “That’s why things like the health exchanges in the health care reform bill are so important for small businesses. They help level the playing field. It is the job of the Small Business Administration’s Office of Advocacy to look out for small businesses. We’re glad that Winslow Sargeant is now in place in the office.”

U.S. Business and Industry Council (USBIC)

“Large and small, the cost of compliance is too great in this country,” said Kevin Kearns, USBIC’s president.

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Ned Smith

Ned was senior writer at Sweeney Vesty, an international consulting firm, and was Vice President of communications for iQuest Analytics. Before that, he has been a web editor and managed the Internet and intranet sites for Citizens Communications. He began his journalism career as a police reporter with the Roanoke (Va.) Times, and was managing editor of American Way magazine and senior editor of Us. He was a Captain in the U.S. Air Force and has a masters in journalism from the University of Arizona.