May 20-26 was National Small Business Week. Around the country, government officials paid homage to the small business owners who drive innovation in our national and state economies.
The recognition is certainly well deserved, but small businesses need more than a week of ceremonial platitudes in order to create the jobs that will spur our national and state economies out of recession.
What small business desperately need is real relief — relief from over-regulation, high taxes, and burdensome labor laws — at both the federal and state levels.
As President Obama signed the proclamation designating last week National Small Business Week, over the past three years 10,215 new federal regulations have been unleashed, 106 of which are “major” regulations (an estimated annual impact of at least $100 million per year) that increase the regulatory burden on private-sector activity by more than $46 billion annually.
Considering that very small firms, those with fewer than 20 employees, spend 36% more per employee than larger firms to comply just with federal regulations, this is not welcome news for the nation’s small businesses. A firm with fewer than 20 employees spends about $10,585 per employee to comply with federal regulations, whereas a firm with over 500 employees spends only $7,755 per employee.