Sometimes I wonder if policymakers in the federal government have ever set foot inside a small business, or if they truly understand the intricate dynamics of running one. Their policies and legislation, although well-intentioned, have frequently placed an undue burden on small business owners, making it harder for them to compete, thrive, or even survive.

1. Overbearing Regulations: One of the most glaring issues is the increasing number of regulations. While these are often designed to protect workers or the environment, they come with a hefty compliance cost. For a large corporation, hiring a team to handle these regulations might be a drop in the bucket. But for a small business, it can take a significant chunk of their time and budget. The hours spent understanding and complying with these regulations are hours not spent on growing the business.
2. Tax Complexity: The tax code is a labyrinth. With each new piece of legislation, it seems to grow more intricate. Again, larger corporations can afford teams of accountants and tax lawyers to find loopholes and reduce their tax burdens. Small businesses? They’re often left trying to navigate this maze themselves, spending money they don’t have on expert advice, or risking penalties for unintentional mistakes.  (And don’t get me started on Congress withholding valuable tax credits from small businesses for political gain.)
3. Healthcare Costs: The constantly changing landscape of healthcare legislation has made it almost impossible for small businesses to keep up. Providing health benefits is crucial to attract quality employees, but the escalating costs, driven in part by federal mandates, are becoming prohibitive for many.  The ACA effectively quadrupled healthcare costs for many small businesses.
4. Minimum Wage Hikes: Don’t get me wrong; everyone working deserves a living wage. But abrupt increases in the federal minimum wage can be devastating for small businesses operating on thin margins. Larger companies might absorb these costs or automate roles, but small businesses can end up cutting hours, laying off staff, or even closing their doors.  Not to mention that when minimum wage increases most companies have to raise their prices to compensate for the added cost – making goods more expensive and basically putting the minimum wage earner right back where they were before financially.  Those who earned more than the minimum wage and did not get the same wage increase are actually worse off financially from the minimum wage hike and resulting price increases.
5. Access to Capital: Federal banking regulations, especially after the 2008 financial crisis, have made it tougher for small businesses to get loans. The stringent requirements mean that banks are often hesitant to lend to startups or smaller enterprises, even if they have a promising business model.

Those in D.C. seem to often forget that small businesses employ the majority of American citizens.  Though the intent of Congress is supposedly to help the American citizens they seem dead-set on making it as hard as possible for their employer to actually afford employing anyone.  Contrary to seemingly popular belief, these small business owners are not all rich.  Many of them might be millionaires on paper (only due to owning the assets of the business) but often take home less money than many of their employees.  It’s frustrating to watch the backbone of our economy – the small businesses – struggle under the weight of policies that seem more tailored for the corporate giants. We need a shift in perspective, one that recognizes the unique challenges small businesses face and crafts policies that support, rather than hinder, their growth.  Is that too much to ask from the greatest country in the world?