New Survey: Regulatory Complexity Stymies Job Creation and Business Growth

WASHINGTON, July 30, 2025 /PRNewswire/ -- The National Small Business Association (NSBA) is releasing new data showing that 1-in-3 small businesses spend more than one full work week per year on federal regulations. The NSBA Small Business Regulations Survey covers a wide array of topics and specific rules and provides insight on the burden placed on small business owners by the federal regulatory regime.

"What people don't realize is that regulatory compliance falls overwhelmingly on the small-business owner, not his or her staff," stated NSBA President and CEO Todd McCracken. "This means you have people who are great bakers, for example, must now become experts in labor law, health insurance, water and energy rules, and so on. The time they spend on regulatory compliance takes time away from creating jobs and expanding the business."

Among the key findings from the survey:

• When asked approximately how much money they anticipate they would spend today in regulatory compliance costs if they were to start their exact same business, the average was a whopping $53,305.
• More than half of respondents reported that compliance with DOL's Independent Contractor Rule was burdensome to their business.
• The #1 source of information on regulations: Business Associations like NSBA.
• Only 1-in-10 small businesses have staff that help monitor the regulatory landscape.
• The majority of respondents in this survey have fewer than 5 employees, yet "Labor" is still the top area they cite for deregulation.

"Regulatory compliance goes beyond just the reporting – small-business owners must read through any possibly relevant rules to determine if they even have to comply," stated McCracken. "The overwhelming majority of small businesses say that guidance memos and other Agency documentation are just as burdensome as the actual regulations. Small businesses need plain language, straightforward protocols and predictability when it comes to rules and regulations."

The NSBA Regulations Survey of Small Business was conducted online from May 13 to June 13 among more than 325 small-business respondents

Please click here to read the full report.

Celebrating more than 85 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America's entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.NSBAadvocate.org or follow us at @NSBAAdvocate.

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SOURCE National Small Business Association