Cost of regulations on small businesses in Colorado

Research conducted on regulation related to business environments and managerial decision making is a full-bodied field of academic and anecdotal study providing ample results of perceived effects of regulations on businesses in the United States. However, while useful in developing understanding related to business owners' compliance or lack thereof, actual quantifiable effects of regulations on the business population specific to a state was lacking in the body of literature. This study supplemented the anecdotal evidence regarding the costs to businesses in a single state by providing an analytical framework to identify actual costs of regulatory policies on small businesses in Colorado through variance in the gross state product for years 2006-2012. This study employed the use of secondary data provided by Forbes Best States for Business rank list developed six hypotheses related to identifying the linear relationship of each independent variable to the dependent variable: gross state product for Colorado. The hypotheses were tested using linear regression analyses and correlational analysis to determine the degree of relationship. Two hypotheses were supported and the remaining four did not identify statistically significant relationships over the time period to the gross state product. The results were discussed relating to the implications on the states' business environment and suggestions for future research based on this study were provided.