Arbitrary Law Enforcement Hampers Small Business

Small business in many parts of the world is hampered by corrupt legal officials or laws that are arbitrarily imposed.

The recent arrest of Russian business tycoon Mikhail Khodorkovsky is a high profile example of what small businesses face daily in countries where the law is for sale.

Small business people in Russia and other countries say corruption and arbitrary enforcement of laws is one of the biggest drags on growth. Small businesses are particularly vulnerable because they lack the clout or funds to protect themselves from bribe-seekers and corrupt court decisions.

According to Andrei Nasonov, head of Opora, a small business association in Moscow, “From the federal prosecutor to the local police, it’s the same behavior: arbitrary interpretation of laws and violations of procedural norms.”

Wall Street Journal subscribers, read more in an article by Jeanne Whalen.

Anita Campbell Anita Campbell is the Founder, CEO and Publisher of Small Business Trends and has been following trends in small businesses since 2003. She is the owner of BizSugar, a social media site for small businesses.