The Government is the body that governs a state, nation or community while Small businesses are those businesses that are owned and operated independently and are limited in revenue and in size depending on the type of industry. Job Growth is the component of a situation abstract of employment that is reported by the Bureau of Labour and Statistics on a monthly basis. It is further expressed as the total number of jobs that were created and available in the previous month. The government has been coming up with tough regulation rules imposed and suggested through its legislators.
The rules are lengthy and extremely strict on reference to the unending grievances and complaints from the small business owners and operators. The regulation rules seem to mainly affect those small businesses that are situated in the local regions of the states.
The main objective of the government in imposing the use of these regulations is to protect many employees who mainly operate in the low-income brackets by raising the costs of their employers. The end result of the game is that it turns out to be negative, as both the employers and their employees end up hurt in ways such as; the employers lower the basic salary rates for their workers, which in turn lowers the income earning rates to a lower degree.
The employees’ cost of living is also negatively affected tremendously. Upon the imposition of the small business regulation act rules, the owners are only left with two options i.e. to either quit the game or to continue working, in turn, impose their own job regulation terms which will ensure that they achieve the maximum profit from their toil. The operators are made to cut the spending cost to the lowest scale as possible. At the rear end, the only people who end up hurt most are the employees, who receive the heaviest blow on their faces. One should note that the main goal of an entrepreneur is to maximise profits while minimising losses.
Some of the growing small business such as restaurants and liquor stores face the most unbearable challenges from the Government’s regulations in some ways such as;
· The operators willing to start the businesses are faced with the long and tedious process of registering their business and issuing them with a go-ahead business license. For example, in New York City if an operator wants to open a liquor store, he/she must first have to wait for a minimum of three/four months in order to perceive whether the community will allow him/her to either continue or not and for the operator to get the liquor licence from the respective authorized state authorities.
· The authorities are also mandated with the responsibility of either accepting or denying the owner a business license regardless of whether the community board had ascertained the establishment of the small business.
· Some of the business permits and inspections of the location areas where the businesses are to be situated, by the government are also extra lengthy and tedious hence jeopardizing most of the valid owner’s dreams. The process may take up to one year before it’s finally done up with.
· The labor laws e.g. law of spread hours which state that an employee is added an extra additional hour at seven dollars minimum wage must be paid to any worker who works an extra second while off his/her scheduled ten-hour shift. This has, in turn, made the employers lower the employees’ earnings which have also decreased their productivity due to the lack of motivation among the workers.
The Government’s role in hurting small businesses has been seen as a major contributor. Therefore the different bodies of the Government that are responsible for establishing and imposing the regulations acts should only do so with a closer look at the end results of their enactments. In turn, the Government should try to minimise those regulations in order to help the general growth of the small businesses, their owners, and their employees which will result in an increase in the gross job growth in the states.
1. John Irons, Isaac Shapiro. (April 12, 2011) Regulation, Employment, and the Economy. Institute of economic policy.