What’s a more iconic American postcard than young kids operating their own lemonade stands? Children from all decades have been encouraged to open lemonade stands to understand the value of the dollar and the responsibilities held with owning and operating a business. Zoey and Andria Green, 8 and 7 years old respectively, decided to start up their own stand selling lemonade and popcorn to earn enough money to buy their dad a present for Father’s Day. The girls made 1/3 of their goal before they were shut down by local enforcement for not having a legal permit. The girls wanted to continue their business but the cost of the permit and inspections by the Texas Health Department did not outweigh the reward. Zoey and Andria have learned at a young age the impact of government regulations on an entrepreneur in hopes of opening their own business.
According to the U.S. Census Bureau, small businesses in the United States account for over half of the employees in the working population. They are also responsible for creating 65% of the new net jobs since 1995 and 50% of the nation’s annual GDP. The federal government has not been supportive of these businesses and has increased regulations under the Obama Administration. The majority of small business owners believe businesses are over-regulated and it is affecting their “operation environment.” Less owners believe they will be able to hire anyone in the coming months and 55% of owners said they would not start a business today given what they know now about current regulatory environment (Source: NAM/NFIB Survey, “Small Businesses and Manufacturers: Government a Barrier”).
The United States has dropped out of the top 10 rankings in ease for starting a business and will continue to drop if more and more regulations continue to be imposed (Source: U.S. World Bank). According to the Heritage Foundation, regulatory burdens on Americans increased by $70 billion during Obama’s first term in office.
Small businesses are the backbone of the American economy and a symbol of the American Dream. Not only will young entrepreneurs like Zoey and Andria abandon their vision of opening their own business, but regulations will also halt the innovation and expansion of American businesses as a whole.