“The number of regulations that have a significant economic impact on the economy have skyrocketed in the past six years, growing an astounding 60 percent,” said Randi Thompson, state director of NFIB Nevada. “These regulations cost a business of 20 employees about $2,400 per worker and cause a significant investment of both time and capital from businesses, and there doesn’t appear to be any end in sight.”
Small businesses account for nearly two-thirds of all new hires on average, making them a critical component for addressing lingering high unemployment rates. Yet hiring and expanding often become secondary priorities to compliance according to event host Ray Pezonella, owner of Pezonella and Associates.
“When I’m forced to allocate 20 or more hours per week of my time preparing for, tracking and complying with regulations from a whole host of federal agencies, it takes time and resources away from what should be my central focus, which is running the business,” Pezonella stated. “When I heard NFIB was going to try to bring this ongoing problem to the attention of federal officials, my first thought was, ‘Where do I sign up?’”
The quantity of federal regulations has real consequences on small companies. On average it costs $2,830 more per employee for firms with 20 or fewer employees than those with 500 or more. That smothers small business owners’ ability to invest or hire new employees.
“Nevada’s unemployment rate sits well above the national average at 13 percent, meaning there are many talented people currently unemployed across the state,” Thompson said. “Small businesses want to grow, hire and increase profit just like any business, but the realized and expected costs of regulations make it difficult to commit to new expenses like new employees or locations.”