Small business regulation is commonly viewed as the most revenue restricting part of any operation. From the mandatory paperwork to the cost and time allocation, the unnecessarily burdensome commitment often comes in first or second when small businesses are asked about top revenue restricting processes (the other being healthcare). Despite these current burdens, things may be changing based off of new movement within the U.S. Small Business Committee.
Phillip K. Howard, founder of the non-profit organization Common Good is a leading advocate on small business specific regulation and recently spoke with the U.S. House of Representatives Small Business Committee to suggest just that. According to Small Business Trends, Howard gave three ways the government could effectively create and monitor small business regulation separate from the current all encompassing large and small business mandates.
- Appoint an independent commission to test methods for making compliance easier on small businesses.
- Create one-stop-shops where small businesses could get any type of federal permit.
- Privatize the enforcement of regulatory issues by allowing small businesses to receive approval from certified regulatory experts.
Generally government departments are weary of eliminating responsibilities so the privatization of small business regulations is a stretch but the idea of small firms being governed by matching mandates is something I can get behind. It just doesn’t make sense to meet requirements similar to billion dollar firms when you’re not offering half of what the big guys. Simple requirements are where we should be moving and this is a good first step.