SILKIN MANAGEMENT GROUP: RELIEVING REGULATORY STRESS ON SMALL BUSINESSES

SILKIN MANAGEMENT GROUP
Relieving Regulatory Stress
On Small Business

Silkin Management Group clients are all small business owners. Most of them are private practice owners in the health care field – dentists, veterinarians and optometrists. Because our clients and Silkin Management Group itself are small businesses, we are continually keeping an eye out for government actions, regulations, laws and activities that affect us all. As an example, many of our various Silkin Management Group blog sites have, over the last year, reviewed in detail the specifics of the new health care law and its effects on all of us.

Recently I read an article, written by Representative Sam Graves, chairman of the Small Business Committee, that I thought was very interesting and something worthwhile to pass along to our readers, whether Silkin Management Group clients or not.

Rep. Graves pointed out that the stress of overregulation on small businesses was actually addressed by a piece of legislation passed in 1980, but that this law is rarely followed. The Regulatory Flexibility Act ordered all federal agencies to closely look at the impact of their rules and regulations on small business. And, if those impacts were of considerable significance, the agency must consider less onerous alternatives.

The problem though, as Rep. Graves informs us, is that the law is often ignored and requires continual orders from the Executive Branch to implement.

Rep. Graves points out that the failure of agencies to follow this law creates the following adverse effects:

 Obstruction of business growth
 Job killing
 Decreasing competition
 A cost of $10,500 per employee – 35 percent more than the cost of regulatory compliance for large businesses.

We wrote an article last year that was posted on one of our Silkin Management Group blog sites that showed that less than 10% of our legislators in Washington had ever run a business. With complete lack of experience in business management they continually pass laws that negatively impact business in general. It’s like a grocery store owner passing a law that has to do with how a dentist is suppose to fill cavities.

At least, though, in this case, they were smart enough to pass legislation requiring review and adjustment of overregulation. But nobody seems to follow it. For a full review of Rep. Graves’ article, click on this link: http://www.rollcall.com/issues/57_7/make_agencies_work_small_businesses-207303-1.html?pos=oopih
Bill Hickey
Consultant for Silkin Management Group

For more information about Silkin Management Group and the various services Silkin Management Group offers, visit our website at www.silkinmanagementgroup.com