DOGE on Main Street

D.C. is abuzz for the first time in many decades with talk about the need to examine government efficiency and how taxpayer dollars are being spent. Through the creation of the Department of Government Efficiency (DOGE), there is a once-in-a-generation opportunity for the Trump Administration and Congress to capitalize on that momentum to support the top U.S. economic driver: small businesses.  

For those unaware of the true importance of small businesses to the U.S. economy, consider that 99.9% of U.S. businesses are small and those businesses employ almost half of all American workers. Collectively, small businesses account for 43.5% of U.S. GDP.  

Yet, it is small businesses across America that bear the brunt of the bloated bureaucracy. Simply put, overregulation adversely impacts small businesses far more than their larger counterparts. Small businesses have less resources to put towards regulatory compliance and the cost of regulations is higher relative to the available resources they do have.   

According to a 2023 study by the National Association of Manufacturers, the annual per employee costs of regulations is $14,700 (2023 dollars) for small businesses with less than 50 employees, compared with $12,200 for firms with 100 or more employees. The regulatory cost disadvantage confronting small firms is amplified greatly in the manufacturing sector, with small manufacturing firms bearing more than double the cost of large manufacturing firms, or $50,100 versus $24,800 per employee.  

It’s for these reasons that Americans for Prosperity is leading the effort to encourage the Administration and Congress to keep main street in mind as they collectively work to improve government efficiency and reduce the overgrown regulatory state. Any efforts to shrink the bloated bureaucracy and improve government efficiency will help small businesses more. The newly created Department of Government Efficiency (DOGE) has a generational opportunity to prioritize their efforts to maximize government efficiency and productivity in a way that invigorates small businesses and restores bustling main streets across the country.  

Americans for Prosperity believes Congress also has a critical role to play in supporting DOGE in its effort to improve government efficiency and reduce the exorbitant regulatory costs bureaucrats place on small businesses. Congress can provide DOGE with statutory authority to act where necessary and pass key bills that can further reduce the regulatory costs on small businesses and promote greater transparency in the rulemaking process.  

As this document lays out, there are clear, concrete steps that both DOGE and Congress can take now to unleash the economic force that is small businesses. Whether it’s prioritizing reversing regulations that address the small business community’s top regulatory complaints, removing barriers that prevent small businesses from accessing capital, or passing critical legislation that would give small business owners a true seat at the regulatory table, Americans for Prosperity believes the time is now to act and support America’s main streets.