CHALLENGES FACED BY BUSINESS IN COMPLYING WITH GOVERNMENT REGULATIONS

Complying with government regulation can sometimes place a huge burden on a business. Some of these challenges are highlighted below.

1. Complexity of regulations: This is perhaps a reoccurring decimal in government regulations

Many businesses find it difficult to know and understand some government regulations. And how will you comply government regulations if you have no idea what they are?

2. Too many regulations and regulatory agencies: Although regulations are very important parts of government oversight functions, they should be, however, done in moderation. Remember the old adage that "too much of anything is bad."  😏.

Too many regulations could lead to non-compliance. Research has shown that many businesses cannot keep up with the high volume of regulations set by many regulatory agencies.

Moreover, too many regulatory agencies will lead to redundancy because the government would spend too much money on several agencies regulating the same business activities.

3. Cost of compliance: Large businesses like corporations may find it easy to comply with government regulations because they have enough funds.

However, this is not the case with small businesses such as sole proprietorships. Many small businesses find it difficult to comply with government regulations because of inadequate funds.

4. Corruption: Corruption is a cankerworm that has eaten its way deep into the regulatory agencies of government. 

This is particularly true in corrupt countries such as Nigeria, where corruption has become the norm.

Bribes must be paid to government officials in order to obtain authorization from them. 

This is why many people in Nigeria believe that you can't get anything from the government without paying a bribe.

However, one tragedy of corruption is that enterprises that refuse to pay bribes face negative responses from government officials. This may not augur well with business activities.

5. Unfavorable government policies: Many businesses find it difficult to comply with government regulations because this policy does not favour them.

After all, no company wants to waste time and resources complying with regulations that are adverse to its functioning.

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