According to the federal Small Business Administration, the cost of complying with regulations for the typical small business is $10,500 per year, per employee. A firm with 10 workers, for example, must pay more than $100,000 every year just to remain on the right side of the rules imposed by Washington.
That’s a drop in the bucket for General Motors or Google, but for the average small business it’s an enormous cost that looms over every decision, including whether to hire anyone new, open a new location or purchase equipment and supplies from other businesses that are struggling with the same calculation.
(Source: Tampa Bay Times, 8/24/12, “Regulations strangling the economy,” by NFIB FL Director Bill Herrle)