The Australian Small Business Blog

Sunday, April 04, 2010

How Bad can Government Small Business Regulation Get?

The Minister for Small Business Dr Craig Emerson has written a good article describing the economic basket case that is California, where their public service is paid with IOU’s. Yes seriously. Silicon Valley and Hollywood pay their public servants with IOU’s. How can they do this? They expect that the rest of the US will bail them out, just like Greece expects the EU to bail them out – a giant Ponzi scheme. (Greece expects Germany to increase their retirement age from the current level of 68, so they can continue retire at 58 and receive 14 months pay every year. What can possibly go wrong with that plan?)

Of course that’s Greece. But what about the Californians – don’t they own the internet? California has got to the point where increasing taxes just turns their most productive entrepreneurs into boat people. So the government instead increases regulation with a multitude of permits required to operate a business. Of course each permit requires a fee – a hidden tax that is ultimately passed onto the consumer. So why would you set up a business in California if you can provide a similar service over the internet, immune from the Californian regulation shakedown. California has reached a tipping point where they are all service without productive economy. (You can’t afford to produce anything there.) A service economy cannot exist without production somewhere in the chain. Which is why the public servants in California receive IOU’s.

Australian, on the other hand, is third OECD in the shortness of time it takes to start a business. Dr Cameron is right, for most businesses it is pretty easy. He also goes on to say that he wants to keep it this way. I believe Dr Emerson is passionate about small business, and I congratulate him for writing this article, and I want to be fair and show the other side after my earlier post on Does the Australian Government Hate Small Business?

Dr Cameron warns against “Californian Dreaming”. While I believe Dr Emerson means everything he says, it is some of his colleagues I am more concerned about!

If you have any comments on small business regulation in Australia, good bad or ugly, please share them in the comments section below.

May Your Business Be - As You Plan It.

Over to You. What do You Think? Post Your Comments Below.

Dr Greg Chapman is the Director of Empower Business Solutions and The Australian Business Coaching Club and is Australia's Leading Advisor on Emerging Businesses and provides Coaching and Consulting advice to Australian Small Business Owners in Marketing & Business Strategies Planning & Systems. He is also the author of The Five Pillars of Guaranteed Business Success.

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