Too often, the regulatory requirements of starting a business are unclear for entrepreneurs. This is especially the case when starting a brick-and-mortar business. Conflicting information from various local regulatory bodies can cause delays that are far costlier than just the added time to become compliant. To entrepreneurs, it may mean more time paying rent on a commercial space with no revenue or income, and it can often be the difference between a successful enterprise and one that is forced to close its doors far too early. Even seemingly insignificant fees and forms can add up to have a detrimental effect. Government should support the following solutions:
- Create a single list of all requirements to start any business and easy-to-read guides that walk entrepreneurs through the permitting process. These should be translated into multiple languages and posted in public offices and in an easy-to-find location online.
- Require coordination across agencies to simplify all federal, state, and local procedures, forms, licenses, and permits required to start a business.
- Create federal and state incentives for local authorities to reduce barriers to starting businesses, even down to the smallest fees and forms.
- Nearly three-quarters of entrepreneurs agree that government regulations on businesses are complex and hard to follow.
- Sixty-five percent of entrepreneurs believe it is too time-consuming for business owners to stay legally compliant with local, state, and federal regulations.
- The United States ranks 53rd in the World Bank’s assessment of how easy it is to start a business.
RESOURCE: One tool governments can use to assess and improve their online business registration processes is the Global Enterprise Registration. The Global Enterprise Registration provides a website assessment tool that allows administrators to evaluate their own sites and see how their online process for registering a business can be improved.