Franchising News

SBA Says Small Firms Unfairly Treated By Federal Regulations

Written by Jenna Weiner
Published: 9/24/2010

Agency releases "Impact of Regulatory Costs on Small Firms" study

The cost for small businesses to comply with federal regulations is higher than that of their larger counterparts, according to a report released by the U.S. Small Business Administration.

SBA Advocacy

The SBA's Office of Advocacy released a study entitled "The Impact of Regulatory Costs on Small Firms," which revealed that the amount small businesses had to pay in order to comply with federal regulations was higher than larger firms. It found that businesses with 20 employees or fewer were forced to pay 36 percent more than larger corporations, with an annual cost of more than $10,000.

“The myriad regulatory requirements placed on businesses and the paperwork, reporting and oversight that goes along with it disproportionately impact small firms and hamper these businesses’ ability to compete in an increasingly competitive and global marketplace," said Thomas Hopkins, a professor at the Rochester Institute of Technology.

The SBA has been making news for small business recently by introducing its Innovative Economies initiative. Regional organizations like NorTech will receive grants form the program in order to help increase job growth in Ohio.

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