Navigation Links
Rand study examines the effect of policy on entrepreneurship and small businesses
Date:12/11/2007

An improved understanding of the effects of regulation on small businesses will help lawmakers develop policy designed to advance entrepreneurship, according to a new RAND Corporation report.

The Kauffman-RAND Institute for Entrepreneurship Public Policy report provides an overview of the ways that regulation and the legal system can discourage or encourage the entrepreneurial spirit. It also examines how specific regulations in four key areas -- health insurance, workplace safety, corporate governance and business organization -- have affected small business.

Small businesses (those with fewer than 500 employees) are an important feature of the U.S. political and economic landscape, accounting for almost half of all gross revenues generated by U.S. business, employing half of all private-sector workers and generating 60 percent to 80 percent of net new jobs.

It is vital to consider how the legal and regulatory environment influences small businesses and the ways in which that influence differs from that on large businesses, said Susan Gates, director of Kauffman-RAND Institute.

Unfortunately, some regulations place a disproportionate burden on small businesses, said Gates, a senior economist at RAND, a nonprofit research organization. At the same time, exemptions and other special regulatory treatment for small businesses designed to ease this burden dont always work.

Studies from the first three years of the of Kauffman-RAND Institutes research are summarized in the new report, In the Name of Entrepreneurship" The Logic and Effects of Special Regulatory Treatment for Small Businesses.

The report finds that the regulatory environment affects small business differently from the way it affects large ones, sometimes leading to unintended negative consequences.

For example, the research found no evidence that state health-insurance mandates designed to expand access to health insurance for small businesses have actually increased their ability to offer benefits or reduced their insurance premiums.

Moreover, the study provides evidence that some small businesses added an employee or two in order to avoid having to purchase health insurance in the more highly regulated market that was intended to benefit these very businesses.

Researchers found that regulations can have both positive and negative effects on smaller businesses, and that regulations are not always systematically bad for entrepreneurs. For example, a review of the evidence on the response of large and small businesses to the Sarbanes-Oxley Act suggests that it has had a mixture of positive and negative effects on small businesses.

Research from the Kauffman-RAND Institute for Entrepreneurship Public Policy suggests possible directions for future policy that achieves a better balance between the interest in restricting business behavior through regulation and the desire to encourage small businesses and entrepreneurs.

For example, one study summarized in the report suggests that health and safety enforcement efforts, rather than treating all small establishments in the same way, might instead target the riskiest small enterprises. The study suggests regulators focus on medium-sized businesses (20 to 999 employees), which were found to have the highest rate of fatal workplace accidents among small establishments.


'/>"/>

Contact: Jessica Goldings
MEDIA@RAND.ORG
703-413-1100
RAND Corporation
Source:Eurekalert

Related medicine news :

1. Penn study finds pro-death proteins required to regulate healthy immune function
2. New study shows promise in reducing surgical risks associated with surgical bleeding
3. Study, meta-analysis examine factors associated with death from heatstroke
4. Study suggests loss of 2 types of neurons -- not just 1 -- triggers Parkinsons symptoms
5. Study says COPD testing is not measuring up
6. Preclinical study suggests organ-transplant drug may aid in lupus fight
7. Ability to cope with stress can increase good cholesterol in older white men, study finds
8. High alcohol consumption increases stroke risk, Tulane study says
9. Mailman School of Public Health study examines link between racial discrimination and substance use
10. Pitt study finds inequality in tobacco advertising
11. Stanford study highlights cost-effective method of lowering heart disease risks
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/26/2016)... (PRWEB) , ... June 26, 2016 , ... Pixel Film ... Pro X. , "Film editors can give their videos a whole new perspective by ... Austin - CEO of Pixel Film Studios. , ProSlice Levels contains over 30 ...
(Date:6/26/2016)... ... , ... Brent Kasmer, a legally blind and certified personal trainer is helping to develop a ... fitness app plans to fix the two major problems leading the fitness industry today:, ... type program , They don’t eliminate all the reasons people quit their exercise ...
(Date:6/25/2016)... ... 25, 2016 , ... Experts from the American Institutes for ... Meeting June 26-28, 2016, at the Hynes Convention Center in Boston. , AIR ... care planning, healthcare costs and patient and family engagement. , AIR researchers will ...
(Date:6/25/2016)... ... June 25, 2016 , ... The temporary closing of Bruton Memorial Library on June 21 due ... up a new, often overlooked aspect of head lice: the parasite’s ability to live away ... a common occurrence, but a necessary one in the event that lice have simply gotten ...
(Date:6/25/2016)... , ... June 25, 2016 , ... First Choice ... States, named Dr. Sesan Ogunleye, as the Medical Director of its new Mesquite-Samuell Farm ... Medical Director of our new Mesquite location,” said Dr. James M. Muzzarelli, Executive Medical ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... DUBLIN , June 24, 2016 ... addition of the "Structural Electronics 2015-2025: Applications, ... In-Mold Electronics, Smart ... Integrated Photovoltaics Structural electronics involves ... as load-bearing, protective structures, replacing dumb structures such ...
(Date:6/24/2016)... According to a new market ... Needles, Safety Pen Needles), Needle Length (4mm, 5mm, 6mm, ... of Purchase (Retail, Non-Retail) - Trends & Global Forecasts ... market for the forecast period of 2016 to 2021. ... by 2021 from USD 1.65 Billion in 2016, growing ...
(Date:6/23/2016)... , June 23, 2016 Research and ... Global Market - Forecast to 2022" report to their ... treatment method for the patients with kidney failure, it replaces ... fluid from the patient,s blood and thus the treatment helps ... and chloride in balance. Increasing number of ...
Breaking Medicine Technology: