In order for a business to keep its profits steady, it must then eithe r increase its income by passing the cost along to consumers, or decrease its expenditures by downsizing. Sometimes this cost is spread out, but on other occasions the cost can be stifling. Unfortunately, we are not seeing this.
Regulations are also an impediment to the efforts of small business owners to complete their goals.
It increases the amount of money that must be poured into a beginning business, as well as requiring much time and work to fill out the immense amount of paperwork that the government requires. It is estimated that the total amount of time required to fill out all the paperwork for American businesses is around 1 billion hours every year. In addition, it is often difficult to keep up with all of the regulations. In February 1995, there were 64,915 pages of regulations in the National Register, and every year around 4,000 new rules are proposed. Regulations also hinder our competitive edge against foreign markets, and can cause one industry to decline in favor of another.