Effect Of Bureaucracy And Regulations On Small Businesses

By Author: Arnold Ojuju
Total Articles: 1
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The amount of pressure that small businesses face in the United States is back breaking and contributes to the reduced success of small businesses. The fact is small businesses often get punished for issues that they are not really responsible for. The real instigators of the crimes against small businesses often go unpunished. A good example of such bad business practices are the laws against cyber threat and ensuring cyber security that are going to be passed. The laws require firms to invest in information technology materials.
There is some suspicion that the laws are the works of some big companies that offer cloud computing. They are suspected to be lobbying for the new laws so that their data center storage can be exploited by the small firms.
The truth however, is that the real crooks are the hackers. The government on the other hand does not want to acknowledge this and they want the small businesses to bear the full brunt of any form of data breach in cyber security.
This is an unfair business practice since the small firms cannot obviously compete with the large firms in securing their data from ...
... hackers. Furthermore, there are definite reasons why the loopholes that hackers use are present. Intelligence agents ask the government to leave some holes that makers of software can use to get in. there is a widely held belief that makers of software and the intelligence agencies are closely tied. This secret does not take long to be divulged and every one can exploit the system in their different capacities.
Though the truth is out and the facts are known, there are more laws that are being crafted to counter the efforts of small businesses in the effort of protecting their data from security breaches. This is a business sector that faces the most threats on data breach. Small firms cannot collate any data and therefore cannot use the data available hence won’t use the information available to make decisions about the transactions they are supposed to make. This makes them highly disadvantaged in competing with the larger firms.
Just a few years back, the internet was considered to provide a level playing ground where the small and the large would compete in a level that offers favorable opportunities to all. This has changed drastically enabling the big players to have certain advantages over the small businesses.
A house committee on cyber security concluded that many companies use personal information that is sensitive. Theft of such information leads to loss of identity. The threat is worse when the individuals whose information has been collected don’t know that their data has been compromised. States have enacted laws against data breach that can at times make business compliance very difficult. It goes further to state that congress needs to address the problems facing businesses with regard to compliance as a result of data breach.
The truth is that there is just too much legislation against data breach and that businesses don’t need any more laws that are repressive and can’t level the playing field. These bureaucracies and regulations are responsible for the demise of small businesses and getting people back their jobs.