An Empirical Study on Simplification of Administrative Regulations: Estimation of Compliance Costs on Small and Medium-Sized Enterprises

A content analysis is also implemented to describe the development of administrative simplification in Taiwan. Study results show that regulations regarding product quality, work safety, corporate governance, business license, equal job opportunity, and commercial lawsuit are the major causes for the administrative burdens of SMEs. Furthermore, red tapes, limitation on executive capacity, informational asymmetry, shortage in regulatory impact analysis, legal deficiency, and inadequacy in regulatory planning all are the main barriers to effective compliance and economic investment of SMEs.

A set of commonly used reform tools and practices in advanced countries, such as dedicated one-stop shops, Web-portals and E-Law advisors, compliance guidelines, scaling and calibrating administrative regulations, specific government bodies assisting small businesses, small business impact assessments, and phased-in implementation of regulations are proposed in conclusion. The use of these instruments is leading to new and more effective strategies to make administrative regulations simpler and less burdensome for SMEs.