Small businesses need many conditions in place in order to thrive: startup capital, a suitable location
and physical infrastructure, shrewd founders who can adapt to changing circumstances — and also, of
course, customers. While, in general, a government’s hands-off policy towards small business can help
small businesses by freeing owners from time-consuming and cumbersome regulations, it is also the case
that some government regulations are needed to protect the public from unscrupulous business owners.
This type of regulation not only helps the public, but helps small businesses thrive by increasing consumer
confidence in small businesses, as well as protecting ethical small businesses from unfair competition
from businesses that break the rules.
The United States has one of the highest rates of entrepreneurship in the developed world — much
higher than the rates in Western Europe. Why? In the U. S. , virtually anyone can start a business. For about
$35, one can obtain a business license, and then you’re officially in businesses. Hiring the first employee
or two is also relatively simple, and some workers can be paid as contractors, which eliminates the need to
administer payroll taxes. In contrast, in Western European nations where you need employment papers
(and sometimes references) to even open a simple checking account, naturally, the regulations and
paperwork needed to start an enterprise can be daunting. Furthermore, laws intended to protect workers
mean that it is virtually impossible to fire anyone, which can be a real burden for a small business that
simply cannot survive with employees who are not up to the task. The lack of regulation in the U. S. is a
strong contributor to the burgeoning of small business in that country.
On the other hand, a pure laissez-faire policy would be disastrous for small business, as well as for
society. Should we allow small businesses to sell “health cures” that actually make people sick, or car
seats for babies that haven’t been through safety testing? Of course not — even if requiring safety testing
puts a burden on small business. The safety of the public is important, to be sure, but public confidence is
also important if small businesses are to have any customers. Furthermore, some small business owners
(just like large business owners) practice racial discrimination, sexual harassment, and other abuses of
workers, such as paying undocumented workers less than minimum wage. It is important for human rights
to curtail these abuses; it also helps small businesses for the government to put a check on such practices,
because then legitimate, ethically-run businesses can compete on a fair playing field.
While this essay propounds a system of minimal to moderate regulation of small businesses, some
might argue that government has no right to intrude on the private dealings of businesses and their
customers. According to this view, if someone wants to offer unlicensed cosmetic injections, and budgetminded
consumers are willing to have their wrinkles filled with who-knows-what, then it is the right of
both parties to transact as they wish. However, in developed nations, governments take on, at very least, the
provision of services that individuals cannot provide for themselves — military defense, the creation of
highways and other infrastructure, and the testing of food and medicine on a wide scale, among others.
Individuals do not have the ability to test every can of baby food for botulism or to evaluate the credentials
of a “doctor. ” Thus, in industries in which human health and safety are at issue, some regulation is justified.
How should governments best help small businesses thrive? In some sense, the answer is that
governments should back off and let people do as they will. In a free market, many small businesses will be
launched, many will fail, and the best will survive. However, some government intervention is required to
protect the public from dangerous products and harmful business practices. These regulations ultimately
help small business as a whole by encouraging consumer confidence in these businesses. 
 Small
  businesses
 need  
many
 conditions in place in order to thrive: startup capital, a suitable location
and physical infrastructure, shrewd founders who can adapt to changing circumstances — and  
also
, of
course, customers. While,  
in general
, a  
government’s
 hands-off policy towards  
small
  business
 can  
help
 small
  businesses
 by freeing owners from time-consuming and cumbersome  
regulations
, it is  
also
 the case
that  
some
  government
  regulations
  are needed
 to protect the  
public
 from unscrupulous  
business
 owners.
This type of  
regulation
 not  
only
  helps
 the  
public
,  
but
  helps
  small
  businesses
 thrive by increasing consumer
confidence in  
small
  businesses
,  
as well
 as protecting ethical  
small
  businesses
 from unfair competition
from  
businesses
 that break the  
rules
.
The United States has one of the highest rates of entrepreneurship in the developed world — much
higher than the rates in Western Europe. Why? In the U. S. 
 ,
  virtually
 anyone can  
start
 a  
business
. For about
$35, one can obtain a  
business
 license, and then you’re  
officially
 in  
businesses
. Hiring the  
first
 employee
or two is  
also
  relatively
 simple, and  
some
 workers can  
be paid
 as contractors, which eliminates the need to
administer payroll taxes.  
In contrast
, in Western European nations where you need employment papers
(and  
sometimes
 references) to even open a simple checking account,  
naturally
, the  
regulations
 and
paperwork needed to  
start
 an enterprise can be daunting.  
Furthermore
, laws intended to protect workers
mean that it is  
virtually
 impossible to fire anyone, which can be a real burden for a  
small
  business
 that 
simply
 cannot survive with employees who are not up to the task. The lack of  
regulation
 in the U. S. is a
strong contributor to the burgeoning of  
small
  business
 in that country. 
On the other hand
, a pure laissez-faire policy would be disastrous for  
small
  business
,  
as well
 as for
society. Should we  
allow
  small
  businesses
 to sell “health cures” that actually  
make
  people
 sick, or car
seats for babies that haven’t been through  
safety
 testing?  
Of course
 not — even if requiring  
safety
 testing
puts a burden on  
small
  business
. The  
safety
 of the  
public
 is  
important
, to be sure,  
but
  public
 confidence is 
also
  important
 if  
small
  businesses
 are to have any customers.  
Furthermore
,  
some
  small
  business
 owners
( 
just
 like large  
business
 owners) practice racial discrimination, sexual harassment, and other abuses of
workers, such as paying undocumented workers less than minimum wage. It is  
important
 for human rights
to curtail these abuses; it  
also
  helps
  small
  businesses
 for the  
government
 to put a  
check
 on such practices, 
because
 then legitimate,  
ethically
-run  
businesses
 can compete on a  
fair
 playing field.
While this essay propounds a system of minimal to moderate  
regulation
 of  
small
  businesses
,  
some
might argue that  
government
 has no right to intrude on the private dealings of  
businesses
 and their
customers. According to this view, if someone wants to offer unlicensed cosmetic injections, and  
budgetminded
consumers are willing to have their wrinkles filled with who-knows-what, then it is the right of
both parties to transact as they wish.  
However
, in developed nations,  
governments
 take on, at  
very
 least, the
provision of services that individuals cannot provide for themselves — military defense, the creation of
highways and other infrastructure, and the testing of food and medicine on a wide scale, among others.
Individuals do not have the ability to  
test
 every can of baby food for botulism or to evaluate the credentials
of a “doctor. ”  
Thus
, in industries in which human health and  
safety
 are at issue,  
some
  regulation
  is justified
.
How should  
governments
 best  
help
  small
  businesses
 thrive? In  
some
 sense, the answer is that 
governments
 should back off and  
let
  people
 do as they will. In a free market,  
many
  small
  businesses
 will  
be
launched
,  
many
 will fail, and the best will survive.  
However
,  
some
  government
 intervention  
is required
 to
protect the  
public
 from  
dangerous
 products and harmful  
business
 practices. These  
regulations
  ultimately
 help
  small
  business
 as a whole by encouraging consumer confidence in these  
businesses
.