This paper reports on a small-scale study of the compliance costs of small New Zealand businesses. Participating firms were asked to keep a record of both time spent and expenditure directly incurred over a thirteen-week period. This differs from previous studies that rely on a firm's recall of how much time has been spent on compliance over the previous year. The results suggest that New Zealand small businesses on average spend less time and money on compliance than has been indicated in previous studies. However a number offirms do perceive compliance to be a major issue and in some cases this perception prevents firms from expanding
