SCM to Measure Compliance Costs

  • André Nijsen
Part of the International Studies in Entrepreneurship book series (ISEN, volume 20)


There are three types of compliance costs caused by business regulations, financial costs (taxes, premiums), information compliance costs (administrative burden) and substantive compliance costs (investments etc.). Taxes and premiums are on-budget incomes for government. That is why measuring of financial compliance costs by doing surveys is not that relevant. However, administrative burden and substantive compliance costs are off-budget costs. Besides, administrative burden and substantive compliance costs are hidden costs for businesses too. No bookkeeping system has separate registration for these two types of compliance costs. Therefore, a new instrument was needed to measure these costs of businesses.

One of the most challenging aspects of such a new instrument is to discuss for which target group the results are. Is it the entrepreneurs to help them reduce their own compliance costs? Or, is it the politician or the law maker to facilitate improving the quality of law by avoiding or taking away unnecessary compliance costs? The answer to this question has a big impact on how to measure compliance costs. This chapter tries to answer these questions.


Policy Area Usual Cost Noise Pollution Compliance Cost Regulate Business 
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Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  1. 1.Adviser Regulatory Reform, SchoonhovenThe Netherlands

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