Regulations are complicated, constantly changing, and costly. 53% of companies have held off on business development due to regulatory burdens and 39% have held off on business development due to impending regulatory changes. The impact of regulatory burden cannot be overstated as 42% of owners have held off on business investment due to uncertainty on the meaning or interpretation of an existing regulation. These regulations have seriously dictated the growth of many companies and the uncertainty of future changes has some companies stuck in a standstill.
Compliance to regulations is still important and companies need to comply to continue operations and maintain their reputation with their clients. More than half of small businesses state that concerns over regulations began within the first year highlighting a major hurdle for many would-be entrepreneurs from starting their own business. The average cost of compliances for startups is $83,019 while complying to regulations costs businesses $12,000 a year on average. Compliance can be very costly for any business, yet the cost of non-compliance is more than double that of compliance costs.
Addressing all regulations for a company can be costly and time consuming. More than half of companies have held off on hiring new employees due to regulatory burdens. Although compliance is an absolute requirement, 63% of small business owners found they only had to comply with regulations half the time or less.
Regulations are complicated, constantly changing, costly, and sometimes not necessary. Understanding the required actions, services, and business guidelines is challenging and often doesn’t make sense. Through On Hand’s services, we can simplify the confusion and make it easier to understand and address your company’s needs.