Washington Policy Center and the Institute for Justice have teamed up to release "Entrepreneurship in the Emerald City: Regulations Cloud the Sparkle of Small Business," a new report written by Institute for Justice attorney Jeanette Petersen that examines barriers to entrepreneurial success due to excessive, and often unnecessary, government regulations.
The study looks at the effects of regulation on entry into several occupations in Washington state and, specifically, the greater Seattle area. The occupations examined are taxicab and for-hire vehicle transportation, cosmetology, street vending, home-based business and childcare.
"What we've found through our research are numerous instances where underdog entrepreneurs end up behind the regulatory eight ball from the word go," said Eric Montague, director for the Small Business Project for Washington Policy Center. "Many of these small-time businesses are having their costs driven up because of the regulatory structure therefore they must pass the higher costs onto the consumers."
Several recommendations to easing the regulatory burden, as highlighted in the study, include:
- A review of all laws and regulations that impede entrepreneurship
- Streamlining the business-licensing process
- Deregulating the taxicab and for-hire vehicle idustry
- Easing regulations on home-based businesses, and
- Relaxing street vending requirements
"The massive amount of red tape required to start and run a business in Seattle is staggering," Montague added. "Some businesses face over 100,000 different regulatory requirements. Few small businesses can afford the time and effort necessary to understand each one of these."
"Entrepreneurship in the Emerald City" is available online or call 888-972-9272.
