Where Are The Small Businesses?
According to the United States Census Bureau the number of new companies as a share of all businesses in the U.S has continued to fall since 1978. More and more we are seeing people opt out of starting their own small business and instead bet on the safety of corporate work. This trend should worry us as individuals and as a society. Americans have long been known as entrepreneurs and small, independently owned businesses were once seen as a staple of the American economy. Where is this problem coming from? Is the millennial generation to blame, has it simply become unpopular? More than likely however, the issue lies at a systemic level, with the classic example of government overreach.
During his campaign(s), Senator Marco Rubio (R-FL) made small businesses a talking point, claiming “for the first time in 35 years we have more businesses dying that starting. This claim should come as no surprise to anyone who has witnessed the excessive amounts of regulation that have been put on small businesses lately. A 2011 Gallup Poll shows that small businesses’ number one problem has been complying with government regulation, and this statement hasn’t changed since six years ago.
With this in mind, it remains difficult to quantify how many exact regulations have been put into place as of recent years, since this isn’t a topic that the Labor or Census Bureau report. Anecdotally we can look at the likes of Dodd-Frank, ACA and many other pieces of legislation and verify the information. The longer we wait, the messier the issue becomes. Now is a perfect time with a new President and new legislators to try and correct this and bring back the entrepreneurial spirit.
With a new administration, we must remain hopeful that Congress will take a hard look at the rules and regulations imposed on small businesses today and how they are hurting the free-market economic agenda. Allow me to be clear: in no way should we advocate for the removal of all these regulations but we should fight to create a perfect monopoly or nearest to it as to avoid the oligopolies that have begun to take over the American marketplace. America has thrived because of its family-based enterprises and small scale stores run by everyday people, and we cannot allow that backbone of American ingenuity to disappear.