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Tuesday, August 23, 2016

Cutting Small Business "Red Tape" Enhance Economic Growth

Cutting "red tape" is one of the most important ways to increase small business and lead to economic growth. Taxes are important and can dampen business, but the amount restriction and confusing legal environments nearly kill it off. Reducing restrictions on new business requires making it more simple and connected to allow people without advanced degrees to figure out the process.

Some legislation is positive while some is useless and was never taken off of the books even though it has long outlived its necessity. Making sure that where entrepreneurial motivation bubbles forward there are opportunities to build a business and not be bogged down by legislation that isn't helpful to anyone.

It is important to remember that many entrepreneurs take considerable risk to start their businesses. They are unsure if they will make it, how they will pay their bills, and if success will ever come. Some will need to invest their own money, time, and resources to create something market worthy. It might not be worth it from a cost-benefit standpoint.

Coming up with a better idea is one thing, but creating a successful business is another. Many great ideas that could spur innovation and growth are lost because it is too difficult to capitalize on them. Getting rid of all the government stops and putting in place a single mechanism and location for approvals would help.

Review, streamline, and removing poor legislation is more important than tax deductions. Government can help small business and lower costs by getting rid of costly roadblocks to starting business. That which is practical and helpful is kept while that which is cumbersome is removed.

Small business is the backbone of America. It is entirely possible that one of the reasons why the U.S. is declining is because it has become administratively heavy and has stifled small business. Large companies have a loud voice and small business has muffled voice in government. To ensure small business can be created, innovate, and influence economic growth it is necessary to change government.

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