NEWSRELEASE
For Release: April 28, 2005 Small Manufacturers To Benefit From Regulatory Reform Will Relieve Unnecessary Burdens While Retaining Needed
Protections WASHINGTON, D.C. - Small manufacturers will benefit from regulatory reforms
being considered by the Office of Management and Budget (OMB) according to
congressional testimony given today by Thomas M. Sullivan, Chief Counsel for
Advocacy of the U.S. Small Business Administration. Sullivan testified before
the U.S. House of Representatives, Committee on Small Business, Subcommittee on
Regulatory Reform and Oversight. “Advocacy believes that the manufacturing reforms, if implemented by federal
agencies, would yield reduced regulatory burden without sacrificing needed
health, safety, and environmental protections,” said Sullivan. Sullivan noted that, “Small business is the driving force behind U.S.
manufacturing. Economic data from 2002 indicate that nearly 99 percent of all
manufacturing firms are small businesses. Put another way, these small
businesses employ over 42 percent of the more than 14 million Americans who are
manufacturing employees.” Nonetheless, he said that “For manufacturing firms employing fewer than 20
employees, the annual regulatory burden in 2000 was estimated [in the 2001
Advocacy-funded study by W. Mark Crain and Thomas D. Hopkins, The Impact of
Regulatory Costs on Small Firms] to be $16,920 per employee - nearly 2 1/2
times greater than the $7,054 estimated for firms with more than 500 employees.” He continued, “The Crain-Hopkins study’s findings are important because they
underscore the significance of small business to the American economy. Despite
the disproportionate regulatory burdens borne by small firms, the small business
sector is the primary engine of job creation, growth, and innovation.” Sullivan ended his testimony by saying “The Office of Advocacy has actively
participated in OMB’s regulatory reform process” and that “Advocacy is committed
to OMB’s regulatory reform process because the process can really only work if
the interests of small business are included.” The Office of Advocacy, the “small business watchdog” of the government,
examines the role and status of small business in the economy and independently
represents the views of small business to federal agencies, Congress, and the
President. It is the source for small business statistics presented in
user-friendly formats and it funds research into small business issues. For the complete testimony, send an email request to
Contact: John McDowell, 02) 205-6941
john.mcdowell@sba.gov
SBA Number: 05-21 ADVO
Press Kit
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The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. For more information, visit
www.sba.gov/advo or call (202) 205-6533.