In the current business world, many regulations have been put to ensure that good business practices are maintained. According to Sarbanes Oxley (SOX) (2004), such regulations include the Sarbanes-Oxley Act that was enacted to enhance corporate transparency that would reduce cases of fraud and corruption. Therefore conforming to these regulations will help the business to be more accountable for its actions and financial statements being more reliable. The business will gain public confidence if such regulations are complied with.
However, the cost of conforming to these regulations may be a challenge to the business since it will be very costly. For example, conforming to the Sarbanes-Oxley Act will enhance transparency in the business and hence the public will have confidence in it. This may not be felt immediately and therefore the business will enjoy the benefits after some time, say three to five years. These regulations also have an effect on decision-making. This is because, for every decision made, it has to match the standards of the regulatory framework hindering the flexibility in decision-making. This paper has concluded that starting up a business venture may be a challenging task considering the formalities involved, finding a source of capital and conforming to the regulations in the business environment. Starting up a business involves many activities but also operating the business is another task that if not well coordinated, may lead to the low performance of the business.

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