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Why Entrepreneurs Cannot Get Businesses Off the Ground

Posted By Anita Campbell On November 14, 2010 @ 10:47 pm In Small Business News | 20 Comments

Right now there’s a lot of focus at the Federal government level here in the United States on creating jobs.  Of course, anyone who thinks government can create jobs doesn’t really understand how jobs in the private sector are created.

Government cannot create jobs.  What government can do is make an environment that encourages businesses to do more hiring. And government definitely can get in the way of new businesses and the employees they may hire.

But if you want to encourage entrepreneurs and small businesses that actually do the hiring, instead of looking at the Federal level, you should be looking at the impact of government at the state and local levels.

According to a series of reports by the Institute of Justice [1]:

” … one of the principal obstacles to creating new jobs and entrepreneurial activity in cities across the country is the complex maze of regulations cities and states impose on small businesses.  IJ’s “city study” reports are filled with real-world examples of specific restrictions that often make it impossible for entrepreneurs to create jobs for themselves, let alone for others.”

The following video from the Institute of Justice (discovered via Instapundit.com [2]), gives examples of the maze of local regulations and laws that hinder entrepreneurship — and by extension job creation — often in baffling and unexplainable ways.  Watch the 5-minute video, “Why Chuck Can’t Get His Business Off the Ground”:


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URL to article: http://smallbiztrends.com/2010/11/entrepreneurs-businesses-off-ground.html

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[1] reports by the Institute of Justice: http://ij.org/citystudies

[2] Instapundit.com: http://Instapundit.com