Sponsored by NFIB — The Voice of Small Business


Small Business Facts

Small businesses create two-thirds of the net new jobs annually, employ more than half of the private-sector workforce, and generate nearly 50 percent of annual GDP.  America’s small businesses are the backbone of our economy and engines of job creation.

 

Regulations by the numbers

Today, there are 3,305 federal regulations in the pipeline, with nearly 1/3 impacting small business directly.  (Source: The Office of Information and Regulatory Affairs, Unified Agenda 2013)

In the first two months of 2014, 72 new proposed regulations affected small businesses, with 12 of them costing $100 million in compliance costs (Source: The Office of Information and Regulatory Affairs)

There are more than 175,500 total pages in the Code of Federal Regulations, an increase of more than 21 percent over the last decade.  (Source: Congressional Research Service)

In 2013 alone, more than 80,330 pages were added to the federal register. (Source: Congressional Research Service)

Estimated cost $112 billion of compliance with federal regulations in 2013, resulting in over 67 million hours of paperwork (Competitive Enterprise Institute)

 

Polls reveal federal regulations hurting small business owners

February’s NFIB Index of Small Business Optimism dropped 2.7 points to 91.4. In comparison, between 1975 and 2008, the historical average Index value was 100.  (Source:  NFIB – Small Business Optimism Index)

59 percent of small business owners think it’s a bad time for small business expansion. (Source:  NFIB – Small Business Optimism Index)

21 percent of small business owners cite regulations as their single most important problem (Source:  NFIB – Small Business Optimism Index)

90 percent of small business owners support reforming the regulatory process.  (Source:  NAM/NFIB Survey, “Small Businesses and Manufacturers:  Government a Barrier”)

74 percent of small business owners believe that businesses and consumers are over-regulated.  (Source:  Public Notice, “MEMO:  National poll on government regulations)

72 percent of small businesses reported that regulations were hurting their “operating environment” (Source:  Wells Fargo/Gallup News Release, “Small Business Index”)

67 percent of small businesses do not have plans to hire in the next six months due to poor business conditions (Source: Capital One second quarter 2013 Spark Small Business Barometer)

62 percent of small business owners and manufacturers say that the United States own laws, regulations, rules, taxes and fees impact their business more negatively than foreign competitors.  (Source:  NAM/NFIB Survey, “Small Businesses and Manufacturers:  Government a Barrier”)

55 percent of small business owners say they would not start a business today given what they know now and in the current regulatory environment. (Source:  NAM/NFIB Survey, “Small Businesses and Manufacturers:  Government a Barrier”)

54 percent of small business owners say countries like China and India are more supportive of their small businesses and manufacturers than the United States.  (Source:  NAM/NFIB Survey, “Small Businesses and Manufacturers:  Government a Barrier”)

 

Impact of Federal Regulations

$515 billion: estimated cost of federal regulations according to analysis by NFIB. (Source:  Small Businesses for Sensible Regulations, “Regulatory Tidal Wave)

Regulatory burdens on Americans increased by nearly $70 billion during President Obama’s first term in office.  (Source:  Heritage Foundation)

Federal agencies reported $23.5 billion in new annual regulatory costs in 2012 alone.  (Source:  Heritage Foundation)

$58.7 billion:  President Obama’s FY2013 budget request for regulatory activities, compared to $2.8 Billion in 1960. (Source: “Growth in Regulators’ Budget Slowed by Fiscal Stalemate: An Analysis of the U.S. Budget for Fiscal Years 2012 and 2013,” The George Washington University and Washington University in St. Louis)

Americans spend 642 million hours at a cost of $46 billion, every year filling out duplicative paperwork.  (Source:  American Action Forum)

George Washington’s Regulatory Studies Center found that the cost of regulatory rules in 2012 under President Obama exceeded the cost of all rules in “the entire first terms of Presidents Bush and Clinton, combined.” (Source: GW’s Regulatory Studies Center)

Average annual cost of regulations in President Obama’s first two years in office ranged from $8 to $16.5 billion, compared to a $1.3 to $3.4 billion during the same period under President Bush.  (Source:  Annenberg Public Policy Center:  FactCheck.org, “Cherry-picking on Regulation”) 

 

Need for Regulatory Reform

283,615 full-time government employees were dedicated to drafting and enforcing regulations in 2012, while fewer than 50 employees at OMB are responsible for reviewing the new regulatory mandates to ensure they are justified and accurate prior to implementation  (Source: “Growth in Regulators’ Budget Slowed by Fiscal Stalemate: An Analysis of the U.S. Budget for Fiscal Years 2012 and 2013,” The George Washington University and Washington University in St. Louis)

One-third of major rules, those costing $100 million or more, from 2003-2010 did not go through public review and input, despite federal requirements for public comment. (Source: GAO Report)

A recent study estimates annual regulatory compliance costs at $1.8 trillion — exceeding half of all total federal expenditures, as well as Canada’s or Mexico’s GDP (Source:  Competitive Enterprise Institute)

Federal agencies did not disclose estimated costs for 10 of the 25 major regulations issued in 2012.  (Source:  Heritage Foundation)