The Impact of Different Types of Regulations on Entrepreneurial Activity and Owner Composition
Main Article Content
Abstract
Our objective in this study is to determine how different regulations affect the entrepreneurial activity in U.S. states. We also examine whether firm/owner characteristics are different in the states with more favorable regulations versus the other states. We use the “United States Small Business Friendliness Survey” done by Kauffman Foundation and Thumptack.com in 2013. This survey asks small business owners their opinions on six different types of regulations including “employment, labor and hiring regulations”, “tax code and tax-related regulations”, “licensing forms, requirements and fees regulations”, “zoning regulations”, “health and safety regulations”, and “environmental regulations”. We ran several nonparametric tests to see if there has been more entrepreneurial activity in states with a high score in each regulation category compared to the states with a low score. Our results show that “employment, labor and hiring regulations” has a significant impact on the entrepreneurial activity in a state. “Tax code and tax-related regulations” is also marginally significant. These findings indicate that states and cities that want to improve their environment for small businesses should specifically focus on improving their “employment, labor and hiring regulations” and “tax code and tax-related regulations”.
Article Details
Section
Once the manuscript is accepted for publication, authors shall transfer the copyright to the publisher. If the submitted manuscript is not accepted for printing by the journal, the authors shall retain all their rights. The following rights on the manuscript are transferred to the publisher, including any supplementary materials and any parts, extracts or elements of the manuscript:
- the right to reproduce and distribute the manuscript in printed form, including print-on-demand;
- the right to print prepublications, reprints and special editions of the manuscript;
- the right to translate the manuscript into other languages;
- the right to reproduce the manuscript using photomechanical or similar means including, but not limited to photocopy, and the right to distribute these copies;
- the right to reproduce and distribute the manuscript electronically or optically using and all data carriers or storage media, and especially in machine readable/digitalized form on data carriers such as hard drive, CD-ROM, DVD, Blu-ray Disc (BD), Mini Disc, data tapes, and the right to reproduce and distribute the article via these data carriers;
- the right to store the manuscript in databases, including online databases, as well as the right to transmit the manuscript in all technical systems and modes;
- the right to make the manuscript available to the public or to closed user groups on individual demand, for use on monitors or other readers (including e-books), and in printable form for the user, either via the Internet, online service, or via internal or external networks.
Authors reserve the copyright to published articles and have the right to use the article in the same manner like third parties in accordance with the licence Attribution-Non-Commercial-Non-Derivate 4.0 International (CC BY NC ND). Thereby they must quote the basic bibliographic data of the source article published in the journal (authors, article title, journal title, volume, pagination).