Small businesses assist in the generation of economic growth in every country. They represent a high percentage of all the employer firms in a given state. The outputs of the small businesses make up the large part of the gross domestic products (McFarland, Mcconnell and Geary 1). In those countries where the impact of the small business to the economy is so high, the leaders formulate more laws to support the interests of the small businesses. It is evident that for the opportunities of the small enterprises to be facilitated, there should be an environment with an efficient regulatory system.
In the United States, there are some of the regulatory policies that have been passed by the Federal Government that hinder the growth of the small business firms. The local taxes and the regulatory policies established in the United States have prevented the formation of new business firms (Lopez 1). The small businesses play a vital role in the economic growth of each state. Hindering their establishment is an indication that majority of the people will be unemployed and as usual, this has always resulted in adverse effects on the economy. Many people who venture into small businesses prefer to control their own businesses. For an individual to start his or her own business, he or she should be ready to endure the barriers imposed by the government regarding excessive taxation.
The other policy that hinders the growth of the small business is that the access to financial funding is complicated. Initially, the banks of the United States were below the normal level in lending funds to individuals who wished to start small businesses. It resulted in many people not starting their own businesses and thus the number of the unemployed in the society increased.
The immigration policy in the United States is another barrier to the development of the small businesses (Baily, Dynan and Elliott). The immigration policy limits the number of the immigrants who wish to settle permanently in the country. The limitation of this policy is that it prevents the potential investors who want to establish their business in the country. The economy is usually affected in a negative way if the immigration policies fail to be adjusted to favor the foreign investors.
In fighting the barriers that prevent the growth of the small businesses, the government of the United States has formulated some policies that support the owners of the small enterprises. An example of those policies is the Small Business Administration (SBA). SBA has assisted many people in many ways. It has provided loans that are easily accessible for those individuals that wish to start their own business. It has also developed programs that assist those that are economically and socially disadvantaged (Dana 207).
The present president of the United States has proposed a tax cut especially on the small enterprises in the state. The proposed policy has already been signed in the law, and this will reduce the amount of taxes that individuals used to experience when establishing small businesses. This policy will favor all the investors and owners of small enterprises. The tax cuts policies have facilitated a better health care for the employees and assisted investors to invest in new equipment and machinery with much ease.
The other method that the government uses to promote the growth and development of the small enterprises is by increasing the entrepreneur education to the people. The owners of the small businesses are imparted with proper skills to manage their enterprises effectively.
Inclusion zoning has also assisted in the establishment of the small businesses. It is a policy that makes it possible for every income earners to obtain a house in residential places. It also provides equal access to public facilities to every individual and those willing to establish small enterprises.
Some non-profit organizations also assist the small business owners in different ways. One of the organizations is Metropolitan Economic Development Association (Meda). It has been an important organization for all the small businesses as it offers a variety of its programs to them. Some of its programs include financial support to the small business owners, research and entrepreneur educations to individual and leadership training to individuals (Nola.gov). It also provides an innovative environment for the individuals of the businesses by providing different technologies and facilities to individuals. All these programs aim at ensuring that individuals are not worried in the establishment of their small business as there are organizations that are ready to support them.
The owners of the small business also receive the technical assistance from the nonprofit organizations in the United States of America. Some of the organizations such as the America’s Small Business Development Center Louisiana (LSBDC) offer technical support at no cost to small businesses. They also provide the owners of the small businesses with training and relevant information that will help them in conducting their activities effectively (Nola.gov).
In conclusion, it is evident that for all the small businesses to survive in the country there must be in an environment that has favorable regulatory policies. In the United States, it is evident that some of the policies imposed by the government hinder the growth and development of the small businesses. Moreover, it is evident that some of the non-profit organizations have been in the front line to assist and support the activities of the small businesses.
Work Cited
Baily, Martin, Karen Dynan, and Douglas Elliott. "The Future Of Small Business
Entrepreneurship: Jobs Generator For The U.S. Economy". The Brookings Institution.
N.p., 2010. Web. 6 May 2016.
Dana, Leo P. “Handbook of Research on Ethnic Minority Entrepreneurship”: A Co- EvolutionaryView on Resource Management. Cheltenham, UK: Edward Elgar, 2007. InternetResource
Lopez, Naomi. BARRIERS TO ENTREPRENEURSHIP: “How Government Undermines
Economic Opportunity”. 1st ed. South Stemmons: The Institute for Policy Innovation,
1999. Print.
McFarland, Christiana, J. Katie Mc connell, and Caitlin Geary. “Small Business Growth: U.S.
Local Policy Implications”. 1st ed. National League of Cities, 2011. Print.
Nola.gov. "Economic Development - Business Services - Other Business Resources – Assistance
For Small Business - City Of New Orleans". Nola.gov. N.p., 2016. Web. 6 May 2016.
