Advantages and Disadvantages of Business Regulations - Assignment Example

Advantages and Disadvantages of Business Regulations Introduction A business may refer to an organization that is involved in trade of goods or services to consumers (Nijsen, 2009). Most businesses are privately run by individuals who are in quest of maximizing their resources or create wealth. However, in realizing their aims ought to comply with already devised regulations that govern respective enterprises either large or small scale for them to run smoothly. Most of these regulations range from health to security besides varying significantly among states though crystallized by the international ones.

In most cases the requirements are almost similar in any given industry (Nijsen, 2009). It is the role of the government to make the business regulations so that they are uniform to everyone despite in certain circumstances bearing merits and demerits, which this essay seeks to highlight. Advantage of these regulations is that a business is able to run smoothly as there is a clear logical framework on how to conduct logistics. This approach makes staffs have a technical knowhow about ethics and decisions that govern their business.

Hence, being able to adapt to the working conditions without any difficulties and still comply to what the industry demands (Handlin, 2011). Rules and regulations are of major importance to a business since it removes much of guesswork by the staff since they ought to work according to the prescribed set of behavior. Through this, conducting of varied practices is effective in both to the staff and those they are serving compared to any industry that do not operate within certain procedures. Another advantage is that rules are able to prevent owners of companies from using power to abuse their workers (Handlin, 2011).

If there were no regulations, most of the rights of workers could be stepped on by their employers. The workers could be receiving meager wages or compelled to work in extremely deplorable conditions, hence regulations safeguard their settings. Since without those regulations, owners could be resulting to actions that not only harm the environment or pursue business ventures that are profit making but also exploit staff. Therefore, by having rules and regulations some of these hazardous behaviors are preventable thus help govern protect its people.

Disadvantages Conversely, business makes it hard to execute certain changes (Nijsen, 2009). Having a rules makes it is a very rigid process to make changes like decision making. In some cases, the regulations made do not account for some situations, this may be a major drawback to a business thus taking them long rectify them when they come their way (Nijsen, 2009). Most business owners sometimes believe that regulations make them incur many costs besides resulting to excessive paper work that is extremely cumbersome.

They claim that regulations are sources of economy going down as things are very rigid in dealing with numerous amorphous issues or predicaments that affect fiscal status. Additionally, some rules or regulations end up not favoring certain industries like BAT whereby in certain states this venture incurs heightened taxation rates while respective states try to minimize tobacco reliance. Similarly, small firms suffer much more than large corporations as the laws are always changing and they do not have enough staff to keep up with the changing laws and nobody considers them mostly (Nijsen, 2009).

Some of the charges put are always a fixed amount and this is hard for small firms or entrants. This becomes a major drawback to them whereby mostly start incurring losses and eventually closed down. Small corporations are sometimes affected by health regulations and this at times discourages them from hiring more personnel and this could lead to high rates of unemployment (Nijsen, 2009). In conclusion, it is evident that regulations could have both adverse and positive impacts depending on the organization (Handlin, 2011).

In order to deal with the negative effects it is important to work on the small businesses and help them succumb the problem and let them thrive. Having controls that favor all the involved will be essential for the success of any state.ReferencesHandlin, A. H. (2011). Government Grief: How to Help Your Small Business Survive Mindless Regulation, Political Corruption and Red Tape. Santa Barbara: ABC-CLIO.Nijsen, A. (2009). Business regulation and public policy: The costs and benefits of compliance.

New York: Springer.