The economic improvements exhibited over the last few years have been very good news for small businesses in general, but at the same time, it’s important to note that some experts believe the recovery for these types of companies in particular could have been a little more robust. Many even believe that there are impediments still in place for growth that could be eased by action from the federal government.
Perhaps the biggest way in which they advocate for changes from Congress and other federal agencies is by easing regulatory controls on many types of industries, according to a report from CNBC. Some studies show that there has been a 44 percent increase in significant federal regulatory controls since 2009 alone, and that these might be costing small businesses more than $100 million per year apiece. Moreover, filling out all of the necessary paperwork associated with regulations these days may cost small businesses in particular as much as 67 million work hours annually.
Another thing that’s taking a big toll on small business, though, is the fact that the government seems to be carrying more debt all the time, the report said. Data suggests that small business owners are quite concerned about the way in which Congress seems to keep increasing spending with few attempts to balance the budget, and believe that it is an impediment to their future success.
Taxes are still problematic as well
One of the big issues that many companies face when they pay for their employees’ health insurance policies, too, is the taxes they often have to deal with when doing so, the report said. The Health Insurance Tax is expected to cost small businesses and individuals buying their own coverage some $134 billion over the next decade alone, which, in turn, could lead to costs passed on to their customers or even employees. Moreover, tax changes have also made it so that the amount of expenses companies can write off has been cut in half, falling to $250,000 from the previous $500,000, and experts say that too can significantly increase burdens and hinder growth.
Owners who want to best position their companies for success should also take the time to review their expenses and see if they can be reduced. Cutting costs for small business insurance policies, like those for general liability insurance, could go a long way toward streamlining their budgets.