Regulatory Compliance Requirements, Administrative Burden, Operational Costs and Compliance Efficiency Among SMEs: A Systematic Review

Introduction: Small and medium-sized enterprises (SMEs) may experience regulatory compliance requirements as relatively high fixed costs because managerial time, documentation, specialist expertise and financial resources are limited. The supplied literature also suggests that simplification, digitalisation and proportionate regulation may improve compliance efficiency, although deregulation can create risks for oversight and public-interest protection.Methods: The researcher-selected databases and information sources were Google Scholar, ERIC. The eligibility protocol restricted publication years to 2015–2026. The exact calendar date of search execution was not recorded in the verified identification provenance; this is distinct from the publication-year eligibility range. Google Scholar and ERIC were the researcher-selected information sources for English-language peer-reviewed publications dated 2015–2026.Results: The synthesis generated seven codes, three categories, two descriptive themes and four analytical themes. Compliance was commonly associated with disproportionate administrative and financial burden, particularly where requirements were complex, fragmented, frequently changing or inconsistently enforced. Digital services, interoperable registers, automation, training and institutional support could reduce manual work and improve transparency, but their benefits depended on implementation capacity and system fit. Simplification and deregulation supported access and innovation in some contexts but required safeguards. Compliance could also improve formalisation, reporting accuracy, legitimacy and stakeholder assurance.Discussion/Conclusion: The evidence supports proportionate, risk-sensitive and coordinated compliance rather than deregulation alone. Policy effectiveness depends on regulatory coherence, institutional capability, SME knowledge, digital infrastructure, accessible guidance and meaningful consultation.

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Publication Details

Journal
Preprints.org
Published
2026-11-02
DOI
https://doi.org/10.20944/preprints202611.0016.v1
Primary Topic
Regulation and Compliance Studies
Type
preprint
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preprint

Regulatory Compliance Requirements, Administrative Burden, Operational Costs and Compliance Efficiency Among SMEs: A Systematic Review

King Costa, Joseph Phosane Mngqibisa
3 links
Preprints.org
Regulation and Compliance Studies
preprint

Regulatory Compliance Requirements, Administrative Burden, Operational Costs and Compliance Efficiency Among SMEs: A Systematic Review

King Costa, Joseph Phosane Mngqibisa
preprint en

Abstract

Introduction: Small and medium-sized enterprises (SMEs) may experience regulatory compliance requirements as relatively high fixed costs because managerial time, documentation, specialist expertise and financial resources are limited. The supplied literature also suggests that simplification, digitalisation and proportionate regulation may improve compliance efficiency, although deregulation can create risks for oversight and public-interest protection.Methods: The researcher-selected databases and information sources were Google Scholar, ERIC. The eligibility protocol restricted publication years to 2015–2026. The exact calendar date of search execution was not recorded in the verified identification provenance; this is distinct from the publication-year eligibility range. Google Scholar and ERIC were the researcher-selected information sources for English-language peer-reviewed publications dated 2015–2026.Results: The synthesis generated seven codes, three categories, two descriptive themes and four analytical themes. Compliance was commonly associated with disproportionate administrative and financial burden, particularly where requirements were complex, fragmented, frequently changing or inconsistently enforced. Digital services, interoperable registers, automation, training and institutional support could reduce manual work and improve transparency, but their benefits depended on implementation capacity and system fit. Simplification and deregulation supported access and innovation in some contexts but required safeguards. Compliance could also improve formalisation, reporting accuracy, legitimacy and stakeholder assurance.Discussion/Conclusion: The evidence supports proportionate, risk-sensitive and coordinated compliance rather than deregulation alone. Policy effectiveness depends on regulatory coherence, institutional capability, SME knowledge, digital infrastructure, accessible guidance and meaningful consultation.

Preprints.org
Industry, innovation and infrastructure
Regulation and Compliance Studies
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