Regulatory agencies can have a significant impact on businesses in several ways:
Compliance Costs: Businesses may incur costs related to meeting regulatory requirements, such as reporting, audits, and implementing safety measures. Operational Changes: Companies may need to alter their operations to comply with new regulations, which can affect productivity and profitability. Market Entry: Regulatory requirements can create barriers to entry, making it more difficult for new competitors to enter the market. Reputation: Compliance with regulations can enhance a company’s reputation, while non-compliance can lead to legal issues and damage to its brand.