Coping with Regulation

1. 1

   Seventeen (17) percent of small employers term regulation a “very serious” problem. Twenty-seven (27) see it as a “somewhat serious” problem while 26 percent believe the problem is “not too serious.” Twenty-nine (29) percent describe the problem as “not at all serious.” Owners of larger, small firms are more likely to describe regulation as a very serious or somewhat serious problem.

2. 2

   Most small-business owners are unhappy with the hassles regulation creates for them rather than the limits it places on their freedom of action. Specifically, 26 percent identify the extra paperwork created by regulation as their primary concern; 22 percent note the difficulty understanding what is needed to be in compliance; the same number mention the dollars expended to comply; nine percent believe the primary problem associated with regulation is the time delay it causes; and seven percent each feel the difficulty locating new regulatory requirements and the limits placed on the actions they want to take are the principal difficulty regulation creates for them.

3. 3

   The Federal government is considered the primary culprit (49%); state government follows in culpability (35%); state and local regulations create the fewest problems (13%).

4. 4

   About half see their regulatory problem as the overall volume of regulations emanating from a plethora of government agencies. The other half view it as a few specific regulations coming from one or two agencies.

5. 5

   Small-business owners most often (36%) identify tax-related regulations, federal, state, and local, as the most burdensome type of regulation. Operational regulations such as occupational licensing and rules governing the conduct of a particular industry are cited with next greatest frequency (21%). Environmental and land use regulations (17%), health or safety regulations (11%), and regulations associated with the terms and conditions of employment (9%) follow.

6. 6

   Eighty-two (82) percent of small-business owners typically discover new regulatory requirements in the normal course of business activity. Twelve (12) percent periodically search relevant materials to locate new requirements.

7. 7

   Small-business owners run across new or altered regulatory requirements in several locations with no single location dominating. Likely sources include: trade publications, newsletters or Web sites (68%), other affected business owners (66%), and outside advisors such as an accountant or lawyer (63%). Those who actively search for new regulations are most apt to do so using trade publications, trade Web sites, or conferences (71%) or special newsletters (61%).

8. 8

   Once small-business owners are aware that they must comply with a particular regulation, they most frequently check out the compliance requirements themselves (62%). Twenty-one (21) percent of owners usually engage an expert and 13 percent customarily assign an employee to gather the information.

9. 9

   One or more government officials entered 42 percent of the nation’s small businesses in the last 12 months to inspect them, examine their licenses or records or otherwise check on their compliance with a government rule.

Volume 1, Issue 5, 2001
ISSN 1534-8326

William J. Dennis, Jr.
NFIB Research Foundation

• 2What is the single greatest problem created for your business by government regulation? Is it the:? Top 100
• 9Within the last 12 months, did one or more government officials enter your place of business to inspect it, examine your records and/or licenses, or otherwise check on your compliance with some government requirement? Top 100
• 1Is government regulation a very serious, somewhat serious, not too serious, or not at all serious problem for your business?
• 3Which level of government creates the most serious regulatory problems for you? Is it the:?
• 4What type of regulations, federal, state or local, create the greatest difficulty for you? Is it:?
• 4aWhat type of health or safety regulations?
• 4bWhat type of regulations associated with the terms and conditions of employment?
• 4cWhat type of tax-related regulations?
• 4dWhat type of environmental or land use rules?
• 4eWhat type of operational regulations?
• 5Some identify their regulatory problems as a specific regulation or regulatory agency. Others identify their problems as the overall volume of regulations coming from many agencies. Which BEST describes the source of your regulatory problem?
• 6Which BEST describes how you find out about a new rule or regulation that you must follow?
• 6Aa(place to search for new rule) The Federal Register or a similar state list of rule-makings.
• 6Ba(place to search for new rule) Web sites of pertinent agencies.
• 6Ca(place to search for new rule) Special newsletters.
• 6Da(place to search for new rule) Trade publications, trade Web sites, or conferences.
• 6Ea(place to search for new rule) Notices from an agency mailing list that you are on.
• 6Ab(place to discover a new rule) Popular media such as radio or newspapers.
• 6Bb(place to discover a new rule) Outside advisors such as an accountant or lawyer.
• 6Cb(place to discover a new rule) Trade publications, newsletters, or Web sites.
• 6Db(place to discover a new rule) Direct contacts from a regulatory agency such as inspectors, advisory letters, or fliers.
• 6Eb(place to discover a new rule) Other affected business owners.
• 6Fb(place to discover a new rule) The agency’s Web site.
• 7A(source of compliance information) Talk to other business owners who might be affected in the same way.
• 7B(source of compliance information) Ask the agency that made the rule for more information.
• 7C(source of compliance information) Attend a relevant seminar or convention session.
• 7D(source of compliance information) Talk to an "expert" about the rules.
• 7E(source of compliance information) Search the Web for relevant material.
• 7F(source of compliance information) Check with an appropriate trade group.
• 7G(source of compliance information) Read general business printed material.
• 8Who is responsible for investigating HOW you are supposed to comply? Do you usually:?