SE Valley Times

Taxes and recordkeeping have emerged as the primary regulatory compliance issues consuming small businesses' time, according to recent data from the MetLife & U.S. Chamber of Commerce Small Business Index for Q4 2024. The report indicates that while confidence in revenue, investment, and hiring plans remains robust, regulatory hurdles continue to pose significant challenges.

The survey reveals that 51% of small businesses believe navigating regulatory compliance negatively impacts their growth. Additionally, 47% report spending excessive time on these requirements. Tom Sullivan, Vice President of Small Business Policy at the U.S. Chamber, states: “Too many regulations cause big headaches for small businesses, even if they feel confident in their ability to comply or have the means to outsource compliance tasks.”

Compared to previous quarters, a growing number of small businesses—39% this quarter versus 33% and 34% previously—are reporting increased time spent on compliance over the past six months. This has led to a decrease in the overall Small Business Index score from 71.2 in Q3 to 69.1 in Q4.

Philip Freeman, Founder and CEO of Murphy’s Naturals Inc., shares his experience with increased lead times for building permits: “The delays make the expansion no longer a good return on investment.” He notes that canceling an office expansion saved money but also meant lost opportunities for local contractors.

Taxes remain among the most burdensome regulatory issues for small businesses alongside record-keeping duties. A significant portion—69%—of these enterprises indicate they spend more per employee on regulation compliance than larger competitors.

Inflation continues to be a persistent concern; it has been cited as the biggest challenge by over half (55%) of small businesses for twelve consecutive quarters.

The U.S. Chamber advocates policies targeting at least 3% annual economic growth through measures like lower tax rates and smart regulations that foster business innovation and investment certainty.

U.S. Chamber President Suzanne Clark emphasizes economic growth's importance: “Our ability to substantially improve our lives depends on how quickly the overall economy is growing,” she wrote in USA Today.

Despite facing inflationary pressures and regulatory demands, nearly half (46%) of small businesses plan increased investments while 41% anticipate expanding staff next year—a notable rise since early 2024.

For detailed findings from this quarter or historical data exploration within this domain visit [Small Business Index](https://www.uschamber.com/smal...).