Filed in archive
Bootstrapper News
by Shawn Hessinger on December 7, 2006

But not small business leaders, according to Renuka Rayasam of U.S. News & World Report.
Small surprise when you consider the findings of a 2001 report on the impact of regulation on small business, a subject that seems to be high on neither major party's agenda.
In "Giving a Leg Up to Bootstrap Entrepreneurship: Expanding Economic Opportunity in America's Urban Centers" authors Samuel R. Staley, Howard Husock, David J. Bobb, H. Sterling Burnett, Laura Creasy, and Wade Hudson argue:
Government regulations can have a debilitating impact on economic growth and entrepreneurship despite the most noble of intentions. By preventing entry, and raising entry costs (including extensive and onerous application procedures), local laws and regulations can have the unintended impact of greatly increasing costs that stifle business formation. These regulations have an especially pernicious effect on small businesses with slimmer profit margins and less capital and other resources (including time) to comply with rules and regulatory mandates.
The study also observes:
Rochester Institute of Technology economist Thomas Hopkins estimates that the annual cost of federal regulations alone exceeded $700 billion in 1999, or more than $7,000 per household. More importantly, Hopkins estimates the average cost to businesses varies inversely with size:
• Businesses with 19 or fewer employees face an average regulatory burden of $5,545 per employee;
• Businesses with between 20 and 499 employees face an average annual regulatory burden of $5,195 per employee;
• Businesses with 500 or more employees face an average annual regulatory burden of $2,921 per employee.
Read the rest of the rather lengthy report here along with more information about the authors. And for another post on what the study has to say about the impact of small business regulation on urban poverty see this.
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/45016
Mr Wong
Vote for How much does politics mean to small business?:
|
Rating: 5.57 out of 7 vote(s) cast.
|
Response from:
Gary Bourgeault (managersrealm.com)
(12/10/06 2:33am)
This doesn't come as a surprise to me either. I think with the growing number of small businesses in the U.S., it's going to be something that politicians will have to watch closely. The small business community is becoming a growing force that will have to be reckoned with.
Response from:
Fred Prescott
(12/24/06 7:55am)
Nice comment...
Perhaps don't know what about you are talking.
Perhaps don't know what about you are talking.
Subscribe
Use the search to look for other interesting posts
| RSS | See all blog subscribe options |
|
What is RSS? | |
| Yahoo! |
|
| Addthis |
|
| Bloglines |
|
| Newsletter | |
| Follow us on Twitter! |















