I’ve written countless articles highlighting the need for regulatory decreases and, well, this current article is no different. Under former President Obama’s administration, regulatory costs for the average small business has hit an estimated $12,000 a year. That number includes workplace upgrades, lawyer fees, and time taken away from business operations to sty compliant with mandatory regulations.
I understand that there are higher averages and estimates out there, but those are more “theory” and “I could be making $20,000 doing this but instead I am taking time doing that” numbers. The solid number we can refer to is the $12,000 estimate in my opinion. Still, that number is too high for businesses operating with less than 5 employees and generating under $5 million in revenue. This is an important issue because these are the bulk of American businesses that are hiring American citizens. If these organizations are spending $12,000 of their time not operating their business, this takes away from its growth and potential to eventually hire more employees.
Regulation has grown significantly under the Obama administration, and while some of it has been justified, a good part has been over-reactions to simple issues. Under a Trump administration small business growth in direct categories will correlate to the regulatory decreases we will most likely see in the coming years. Whether this will have a long term effect on the environment or social issues remains to be seen, but growth seems to be the logical result for now.