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A Burden on Business? Reviewing the Evidence Base on Regulation and Small-Business Performance

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  • John Kitching

    (Small Business Research Centre, Kingston University, Kenry House, Kingston Hill, Kingston upon Thames, Surrey KT2 7LB, England)

Abstract

The evidence base regarding the impact of regulation on small-business performance is reviewed. The substantive findings of various studies and their methodological approaches are critiqued. Many studies suffer from inadequate conceptualisation of ‘regulation’ and methodological shortcomings, and fail to investigate the causal mechanisms through which regulation contributes to business-performance outcomes. In some cases, they positively encourage superficial and misleading results. More sophisticated approaches, using qualitative data, demonstrate that regulations generate a variety of consequences and should not be conceptualised solely in terms of costs and constraints. Rather, regulation can impact upon small businesses directly and indirectly, and both constrain and enable and motivate business owners to act. The impact of regulation is contingent upon business owners' adaptations to particular interventions within the broader social contexts within which they operate. The implications for policymakers are discussed.

Suggested Citation

  • John Kitching, 2006. "A Burden on Business? Reviewing the Evidence Base on Regulation and Small-Business Performance," Environment and Planning C, , vol. 24(6), pages 799-814, December.
    • Handle: RePEc:sae:envirc:v:24:y:2006:i:6:p:799-814
    DOI: 10.1068/c0619
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    References listed on IDEAS

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    1. Pierre, Gaelle & Scarpetta, Stefano, 2004. "Employment regulations through the eyes of employers - do they matter and how do firms respond to them?," Policy Research Working Paper Series 3463, The World Bank.
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    4. World Bank & International Finance Corporation, 2006. "Doing Business in 2006 : Creating Jobs," World Bank Publications - Books, The World Bank Group, number 7421.
    5. Tran-Nam, Binh & Evans, Chris & Walpole, Michael & Ritchie, Katherine, 2000. "Tax Compliance Costs: Research Methodology and Empirical Evidence From Australia," National Tax Journal, National Tax Association;National Tax Journal, vol. 53(2), pages 229-252, June.
    6. David Collard & Michael Godwin, 1999. "Compliance costs for employers: UK PAYE and National Insurance," Fiscal Studies, Institute for Fiscal Studies, vol. 20(4), pages 423-449, December.
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    Cited by:

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    2. Sangheon Lee & Deirdre McCann & Nina Torm, 2008. "The World Bank's “Employing Workers” index: Findings and critiques – A review of recent evidence," International Labour Review, International Labour Organization, vol. 147(4), pages 416-432, December.
    3. Bruce Cunningham & Leon Colombo & Ulises Garcia, 2015. "Exploratory research into government regulation's impact on business-level employment growth," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(3), pages 375-390.
    4. Holz, Michael & Schlepphorst, Susanne & Brink, Siegrun & Icks, Annette & Welter, Friederike, 2019. "Bürokratiewahrnehmung von Unternehmen," IfM-Materialien 274, Institut für Mittelstandsforschung (IfM) Bonn.

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