Tuesday, January 17, 2012
Small Business an Endangered Species
Money being the Mothers Milk of Politics it’s a fine pickle we have created:
It has been said that money is the mother’s milk of politics, this in many ways has been the Achilles heal of small business. The lobbyist that represent banks, big business and special interest have had their way to the detriment of America and small business. They have shaped and crafted regulation that has shifted commerce strongly in their favor. As the stocks of large companies rise we are often oblivious to the names of local businesses that cease to exist.
Small business, with two to ten employees, are becoming an endangered species in America. The family business once the backbone of this country is under attack from the unintended consequences of the laws passed in recent years. Inspections, a plethora of permits, licenses, taxes, insurance requirements, and regulations make it almost impossible for a small business to open and operate legally. Sadly as this is happening the country no longer is seeing children learning valuable skills as they grow up in an environment where the whole family pitches in to build a future and better the community.
Owners of small businesses are burdened with spending countless hours trying to comply with government mandated red tape rather than in earning a living. A fact that often goes unnoticed and is usually denied by government employees is that jobs in Government often pay better and are less demanding then those in private business. The government also provides better job security and many benefits the private sector can’t match. This is a strong incentive for people not to take the risk of starting their own business.
The question of whether bigger is better has often been debated as Wal-Mart expanded across the land. The advantage of size allows for whole departments to specialize in dealing with Government regulations that have become the bane of the small businessman. Even as many small businesses try to carve out a niche they can defend against the giant retailers down the street they must also compete against exploiters like Amazon that have no brick and mortar presence in the community and often avoid cost such as local and state sales tax.
While efficient in distributing goods these behemoths diminish cultural diversity and alter the fabric of society. The jobs they offer neither fulfill or excite, few people grow up filled with desire to work at a big box store like Wal-Mart or in a Amazon warehouse. My point; a special effort must be made to simplify and lessen the regulatory burden on small business if we want to continue creating new jobs. This is the best hope for America to remain a land of opportunity and to give our children options as to what kind of life they might choose to live.
Footnote; for more on the subject as to how few people go down the path to having and running their own business see the post below,