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Small businesses' problem with government regulation

from Small Business Trends

Government regulation adversely affects small business. While the finding may be intuitively obvious, World Bank economists recently showed that entrepreneurs create fewer new businesses in countries with regulations that make starting companies more difficult. Reducing regulation also enhances the performance of small companies. For instance, researchers found that efforts to simplify the new business formation process in Mexico boosted small business employment by nearly 3 percent. Economists believe that regulation hurts small business in four ways. more


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