
by Chris Saxman
Small business costs and Virginia’s competitiveness in CNBC’s Top States for Business
Small businesses are central to Virginiaโs economic dynamism, job creation, and regional resilience. However, higher taxes, expanding labor mandates, regulatory complexity, and litigation exposure impose disproportionate costs on small firms compared to large employers.
These pressures directly affect Virginiaโs performance in CNBCโs Top States for Business rankings, particularly in categories measuring Business Friendliness, Cost of Doing Business, Workforce, and Economic Growth.
Why small businesses absorb costs differently
- Small firms lack scale to spread fixed costs such as compliance, legal counsel, and human resources.
- Owners personally absorb administrative and regulatory burdens, diverting time from growth and sales.
- Large firms amortize costs across thousands of employees; small firms experience them per hire.
- Increased risk exposure leads small businesses to delay hiring or cap headcount.












