Over and over again we’ve told you how important small businesses are to the U.S. economy.
The people who set out to work for themselves by becoming innovative entrepreneurs are truly following the American Dream.
It’s not easy to start your own business. It takes people away from their families, requires you to take major risks and can cause some serious stress. But if the success of small businesses and start-ups are the cure for a sick economy…why aren’t we doing more to make things easier for them to survive?
It’s easy to point fingers and blame the lawmakers in Washington. But even if the government provides tax breaks and makes it easier for smaller companies to get loans – there are still plenty of hurdles to jump.
Perhaps we need to start looking at problems a little closer to home…
Are there laws and regulations, in your state, in your county or in your city that make starting your own business even more complicated?
The Institute for Justice in Virginia published eight studies last fall that show how local governments have many “irrational and anti-competitive” rules that make becoming an entrepreneur a huge headache.
Institute for Justice president and general counsel, Chip Mellor had this to say:
“If the nation is looking to the federal government to create jobs in America, it is looking in the wrong place. If we want to grow our economy, we must remove government-imposed barriers to honest enterprise at the city and state levels. Remove those barriers, and you will see a return to the optimism and opportunity that are hallmarks of the American Dream.”
So how bad is it? Check out the awesome video below and you’ll see why people like “Chuck” get so frustrated trying to start their own businesses.
Free Market Capitalism is the system our economy is based on. But after watching that video, doesn’t it seem like that’s being squashed? Shouldn’t the ability to be competitive be an important part of this kind of economy? Instead – it seems like many local governments are looking to squeeze the life out of entrepreneurs before they even take a swing at it.
The Institute for Justice describes it as an attack on our economic liberty.
One of the group’s eight studies included a look at Houston, Texas, which it said has a reputation for “fostering entrepreneurship.” The city of Houston does not have a zoning ordinance or a a general business license requirement. That means many business owners have a lot less red tape to cut through.
In 1960, Houston had just one Fortune 500 company, but today it is home to 23 Fortune 500 companies – only New York City has more. Could that be because the city of Houston created an environment where businesses could thrive and grow? The Institute for Justice thinks so.
G.E. Miller from the blog 20SomethingFinance.com put up an interesting post this week examining the health of the U.S. economy. It included a graph from the New York Times comparing the U.S. to other developed nations.
The data indicates the United States is third from the bottom of the list when it comes to economic quality. It’s quite obvious something just isn’t working here in America.
G.E. and his readers have been debating different solutions to start eliminating debt and revive the nation’s economy. Check out the post Broke and Broken: It’s Time to Start Fixing Our Country to join the conversation and find out more.
Obviously – there isn’t just one solution because there isn’t just one problem.
But I think the success of small businesses is one of the big keys to turning things around.
What Can We Do?
Start by supporting locally owned businesses where you live.
That means opening up the Yellow Pages or getting on Google and finding out who they are!
That means going out to eat at locally owned restaurant instead of one of the big chains.
It means shopping at a regional grocery store instead of buying cheap food at Wal-Mart. It means fewer trips to the mall and more trips to Main Street.
I’d also suggest you look into what kind of ridiculous rules and regulations small business owners in your neck of the woods are forced to deal with. Then contact your local lawmakers and tell them why things need to change!
Sometimes looking at the big picture is overwhelming. All we can do is try to change things a little bit at a time. Imagine if no one recycled because we all thought – “Who cares about my cans and bottles? It’s not like I’m going to make much of a difference.”
20 years ago – not very many people were recycling. But things have changed because people cared.
We’re talking about the future of our country. I think it’s time we started to care.
If you’re part of a small business that’s struggling because of what you think might be unfair restrictions – find out what the Institute for Justice might be able to do for you. Below is a video about a small specialty farm in Minnesota that IJ is helping.
Image Credit: DRB62
Image: Andy Newson / FreeDigitalPhotos.net
+Kasey Steinbrinck is the web content creator for online check printer Check Advantage. Visit the site to check out cool personal checks and QuickBooks Checks for small businesses at prices up to 75% off what your bank charges. Contact Kasey to get free original content for your blog or website.