This article examines the rising importance of environmental regulation to small business. Initially, an overview is presented of the federal environmental regulatory framework. Then, two emerging – and converging – trends are examined. First, the expansion of the concept of individual liability for environmental problems is outlined. Then, the growing trend in environmental regulation toward enforcing existing federal laws on small business owners and executives is looked at. After this exposition, the potential ramifications of the intersection of these two trends for entrepreneurs and small business in general. In conclusion, a discussion of what this means for the environmental management strategies for small businesses and for the nation as a whole is presented.