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This is a fascinating topic that is touched lightly in this report. These are personal reasons for not starting a business. I’m very curious on explring actual barriers, both de facto and de jure that make starting a business out of most folks’ reach. https://twitter.com/sbsurvival/status/1349803336183271426?s=21
Permits, licenses, compliance to local, state and federal regulations make up usual barriers of entry to markets.
There are some that are not specifically written norms but rather unintended consequences of both related and unrelated regulations. These are “de facto” barriers.
There are some that are not specifically written norms but rather unintended consequences of both related and unrelated regulations. These are “de facto” barriers.
Zoning is a major one. Single-use districts place commercial areas far from people’s homes and many people who would work on their business while tending to children or dependents. Large parking, lot size and other requirements also kill many new businesses before they start.
Wage and other price controls are also barriers that limit the operation of tiny new businesses and kill them in utero. Sometimes productivity at embryonic stages won’t allow hiring full-time or selling better quality imported goods despite it being critical to the operation.
Zoning or artificially high wages are de facto barriers. Unintended consequences of other regulations that end up increasing the opportunity cost of opening a business.
