government stifles home-based business development

A study by Henry Beale published and funded by the SBA Department of Advocacy reports that the IRS and local zoning laws create major headaches and hurdles for home-based businesses (thanks to the National Dialogue on Entrepreneurship for featuring this study).


Like other studies on small business, this research clearly shows that these birthing grounds of entrepreneurial activity suffer from a disproportionate share of government intervention and regulation when compared to larger corporations. Why is this important? Just keep in mind the number of highly successful ventures that started in people?s kitchens, garages, basements and bedrooms. While less than 10% of businesses operated out of the home have employees, many of these will create jobs and economic growth as they leave the bootstrapping environment of a home business and move out into the marketplace. Our entrepreneurial recovery needs job creation and new business formation. And home-based businesses have a long history of spawning successful ventures. Once again, let me state that the evidence from all over the world supports the premise that the best role for government in entrepreneurial development is to provide access to education about the process, and then get out of the way!