Regulatory Flexibility Act 1980 essay

Hence, the essence of the Regulatory Flexibility Act under business law is vital to the growth of small businesses and entities (Freedman, et, al. , 1988 p. The Procedural Requirements from the Regulatory Agencies The regulatory agencies are the bodies mandate to regulate the business operations in a country. These are the institutions which formulate rules and regulations that are later imposed on the businesses for various purposes. Different regulations guard against distinct aspects of business operation. Consideration of Alternatives The Regulatory Flexibility Act has over the years benefited the small businesses over the years since its establishment. Regulatory agencies have since then been considering alternatives that will help them achieve their objectives while still maintaining the idea of reducing the economic burden that is faced by the small business entities.

This is vital because the agencies cannot just concentrate on reducing the burden on small business whereas the achievement of agency goals is not visible. The same applies to the vice-versa where the agencies cannot work towards the attainment of their goals whereas leaving out the concerns of the small businesses. Alternative options are often a good idea because they provide a range of choices from which to pick. Innovativeness is a very significant aspect of the economy especially if a country is looking to create a sustainable environment that will ensure there is productivity. This can only be achieved if these businesses are allowed to operate in an environment that is conducive. The Regulatory Flexibility act serves the purpose of protecting the small business by making sure that the regulations imposed do not hurt or discourage the operations of the small business.

The end result is that the entities grow thereby allowing creativity to influence the economy. Curbing the Overwhelming Regulations The overwhelming regulations on the small business entities were also part of the reasons why this Act came into place. The small businesses, on the other hand, do not enjoy economies of scale and that made it difficult for them. Hence, the small businesses were enduring a lot of costs in trying to survive in the market. The Regulatory Flexibility Act sort to create a balance so that the disproportionate effect of regulations on small businesses would reduce. This has been so far a success because this Act has been able to ensure that government agencies thoroughly scrutinize the regulations they form and how they determine which business are to be imposed with what kind of regulations.

For small businesses, fairly manageable regulations whereas the bigger firms also have had their fair share of the same. At the same time, the agencies have grown in matters regarding the rolling out of rules. The regulations are more manageable than they had been prior to the establishment of this Act (Kitching, 2017 p. The agencies’ compliance with the Regulatory Flexibility Act has tremendously improved. This can be attributed to the sense of responsibility in the agencies. No government agency wants to be seen as the reason for the fall of small businesses. "Regulatory costs on entrepreneurship and establishment employment size. " Small Business Economics 42. Freedman, Doris S. , Barney Singer, and Frank S. Swain. Routledge, 2017. Kitching, John, Mark Hart, and Nick Wilson. "Burden or benefit? Regulation as a dynamic influence on small business performance.