The top 3 reasons cited for small business failures in a 2007 State Survey were a lack of adequate financing, regulation & taxes in that order. The State Government does not seem to understand the burden that excessive regulation puts on small business. When they require businesses to foot the bill for their regulations, it is essentially an unfunded mandate. If that wasn't bad enough, the State's current, regressive B&O tax already puts Washington Businesses at a disadvantage with other states- even taxing businesses on losses they receive.