In the survey that Thumbtack released the other day, they found that business owners cite licensing restrictions as a burden far more often than they do anything tax-related. On the heels of the Kauffman Foundation's License to Grow report released in January, and terrific work by Morris Kleiner, the burdens and benefits of occupational licensing are finally getting more attention.
And, this week, the Institute for Justice released a terrific report and helpful video that focus on the impact of licensing restrictions on low-income entrepreneurs--individuals trying to start businesses in what are typically low-income lines of work. You can view a profile of your state or see the profiles of the 102 occupations that IJ examined. It is really outstanding work and underscores the other work done in this area and pinpoints those small and nearly invisible places where economic activity could be more productive.
The thing about licensing restrictions isn't necessarily the cost - it's the red tape that one has to deal with.
Entrepreneurs are normally - let's just say - not the best at paperwork. Meanwhile bureaucracy thrives on it. The complication for the business owner usually isn't the cost, it's the complication and compliance that all too often seams completely unnecessary.
Posted by: Fax Authority | May 21, 2012 at 01:31 PM