Starting a small business in America today is next to impossible. Over decades regulations and laws at the Federal, State, and Local levels has made the small business -environment very unfriendly. So much so, that it is a very intimidating prospect to any would-be business owner. The idea that innovation and invention have been lost in America is not true. Every day in towns, cities, farms and ranches across this nation new ideas are formulated. However, there is no attainable mechanism for people to take their ideas from the thought stage to the development stage. Once someone even considers the possibility of moving further they are quickly met with reality. They are faced with cost, resources, and location issues. This does not even include the rules and regulations which they must adhere to.
For, America to rise above its current state of high unemployment and low wages the small business ecosystem must be reinvigorated. The policies which have been implemented have been nothing more than lip-service. They do not create jobs or opportunities for the vast number of people. However, when a small business is started jobs are created immediately. Newer and better choices enter the marketplace. And consumer prices tend to decrease as well.
What if we could ease the rules and regulations? What if instead of bombarding these would-be entrepreneurs with numerous (and sometimes arcane) rules and regulations, we placed them to the side? A lot of these constraints are in place to “ensure public safety and well-being.” This is needed of course. But we don’t have to subject new businesses to most them.
For example, a lot of these constraints relate to financials. But in most cases with small business (especially those just starting out) the forms and associated inspections are not applicable. Which means that the new entrepreneur either spends their time getting up to speed on these constraints, preparing forms and attending inspections. Or, they must budget into their financial plans the costs associated with hiring someone else to attend to these issues. When they could be using their time and/or money for building their new business.
I am not saying that we need abolish all rules and regulations. Naturally, those which directly affect the health and safety of either workers producing the goods or consumers of the goods must be maintained. I am simply saying that we have a good look at all the rules and categorize them appropriately to applying to either small, medium or large companies.
There is one flaw to this. Many the rules and regulations are in place to protect large and/or established companies. And to set them aside to get more innovation and competition into the marketplace poses a clear and present danger to these companies. For this, I, don’t have an answer.
I have always believed in the ingenuity of regular people. Up to this point, the politicians and business have not provided any answers. So, I ask you, how can something like this be started and implemented fairly? What are your suggestions and thoughts? Let’s start a discussion.