A recent study by the SBA Department of Advocacy reports that the federal tax laws, as well as zoning laws at the local level are creating major headaches for home-based businesses.
This is not unlike other similar studies I’ve read on small and home-based business… like them, this research clearly shows that these incubators of entrepreneurial activity suffer disproportionately from government intervention and regulation when compared to larger companies. Why does this matter to you?
Remember: most small businesses start out in someone’s spare bedroom or garage. (Heck, many large businesses start this way, including giants like Apple and HP!) While less than 10% of home based companies have employees, a larger percentage of these will create new jobs and foster economic growth as they grow. If we’re going to have a true economic recovery, there needs to be a focus on job creation and the formation of new businesses… and limiting the ability to effectively run a small company out of the home is a great way to shoot our prospects for recovery in the foot.
Again, there is overwhelming evidence to support the premise that the best role for government– local, state, or federal– in entrepreneurial development is to provide educational resources about the process of starting and running a company legally, and then get out of the way. Will this happen? Well, I can dream, can’t I?
IRS and zoning law headaches on the rise
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