The amount of time spent complying with rules is rising.
Too many regulations cause big headaches for small businesses, the latest MetLife & U.S. Chamber of Commerce Small Business Index found.
A majority of small businesses said licensing, certification, and permit requirements make it harder for them to grow.
47% said they spend too much time complying with regulations.
69% said they spend more per employee to comply with regulations than larger competitors.
Taxes (along with record-keeping) are the top regulatory compliance issues small businesses report spending their time on.
Philip Freeman, Founder and CEO of Murphy’s Naturals in Raleigh, NC, said his company had to cancel an office expansion because it took too long to get building permits.
“The delays make the expansion no longer a good return on investment. While we saved money by canceling the construction, some contractors missed out on the construction project that would have been good for our local economy,” Freeman said.
The overall Small Business Index score fell to 69.1 in Q4 from 71.2 in Q3, in part due to small businesses saying they were more likely to spend more time dealing with regulations than last quarter.
Inflation remains a big issue, with more than half (55%) saying it is their biggest challenge.
Yet many small businesses remain optimistic.
Almost half (46%) say they plan to increase investment, and 41% say they anticipate hiring more staff in the next year.
For more findings from this quarter and to explore years of small business data, visit the Small Business Index.
