Uncertainty within business is the enemy of growth, as business leaders are less likely to take risks when the economic climate is unsettled and potential outcomes are difficult to predict. Mesirow Financial Consulting, LLC (MFC) recently conducted a survey of more than 400 C-Suite executives throughout the United States to measure the regulatory issues of most concern to key executives and company decision-makers that have been impacting the overall economic climate in the U.S. Results of MFC's first annual "What's Keeping You Up at Night?" survey indicate that business leaders have conflicting views on the efficacy, need and quality of today's regulation, reflecting the uncertainty prevalent in the market today.

The results of the survey indicate that business leaders have a grim view of the state of the overall business climate in the United States. Almost one-half of respondents (46.8 percent) maintain that the climate is poor, while 38.6 percent believe that it is fair. Only one percent of respondents believe the climate is excellent.

The main focus of the survey was respondents' feelings about the regulatory environment and its impact on businesses. When asked which industry respondents think is most in need of more regulation, almost one-third of respondents (27.7 percent) selected finance. The second-most chosen industry is non-profit, as 13.4 percent of respondents believe that non-profit organizations are in need of more regulation.

Respondents recognize positive impacts of some rules and regulations. For instance, 20 percent of respondents believe that regulations give the public confidence that an industry is stable, while 13.6 percent believe that regulations keep poorly-managed businesses out of the market.

"Businesses typically have a love-hate relationship with regulations," said Jack Williams, senior managing director at Mesirow Financial Consulting and national co-leader of the firm's Litigation, Investigative and Intelligence Services Practice. "While the survey indicated that 28.5 percent of respondents think that one negative impact of regulations is that they can impede growth, people do recognize the positive impact regulations can have." 

Although business leaders believe that regulations may be troublesome, the amount of time spent dealing with federal, state and industry regulations are not considered to be onerous. More than one-third (38.9 percent) of respondents indicate that they spend a few (one to eight) hours per month dealing with issues regarding regulations for their industry, and approximately 36.1 percent say they spend one to three days each month.

"Companies have created systems and mechanisms to deal with current regulations, which are required to improve growth prospects," said Williams. "Macro-economic, micro-economic, regulatory and political uncertainty are taking a toll on our economy. The more uncertainty there is, the fewer risks businesses are likely to take.  Uncertainty chokes business growth, which is why many regulations are actually a friend of business development, not a hindrance."

Mesirow Financial Consulting is a full-service financial and operational advisory consulting firm. MFC provides corporate recovery, litigation, investigative and intelligence services and valuation services on a global basis.

Mesirow Financial Consulting contracted IBOPE Zogby International to conduct an online survey of more than 400 C-level executives across the United States. The survey was conducted from May 2 – May 4, 2012.  A sampling of IBOPE Zogby International's online panel, which is representative of the adult population of the U.S., was invited to participate.  The margin of error is +/- 5.0 percentage points.

Full survey results can be found here.