How does government regulation impact small start-up businesses?

Here’s an exploration of the impact of government regulation on small businesses. (H/T Foxfier)

Fewer businesses means fewer new jobs.

It also means that consumers have fewer options to get better quality products and services for less money. Boo!

One thought on “How does government regulation impact small start-up businesses?”

  1. while I agree with you that we often have toooo much red tape with getting business started, but to pick a few odd examples around the country and make a general point doesn’t necessarily follow. True story: some kid in a [some city 300 miles away] neighborhood released a couple of balloons with his address on them. Guess where they came down? the intake for my furnace. Cost to repair the damage? $450. Could I sue him or his parents, no. There was some legal reason that more or less amounted to I couldn’t prove intent or that he actually released them, etc.

    I think the bigger issue is large corporations and the ability to patent business methods. Think of ebay paying off the guy who patented the online auction. Now anyone who wants to compete with ebay has to pay upwards of 8 figures just to enter the online auction market (something if you consider phones have been involved in auctions since their introduction brings a remote, online aspect and prior art). Or facebook suing the teacher site that had book in its name – when facebook wasn’t even the first – there was a guy that opened a site almost identical to facebook with book in it’s name too) over a decade earlier.

    Highly specific and regional laws are not the problem – patents and copyrights and DMCA and ACTA (I think that’s the right term) have created a barrier to entry so high that most corporations have been ensured a monopoly.

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