Mark Cuban, the near legendary multi-billionaire that knows a thing or two about start up businesses has an interesting blog posting today about how to spur the increase in small business startups. He notes the intimidating paperwork that is associated with starting a business (noting four forms for the state of Texas -- where he lives) and didn't even touch on the city paperwork that people have to step through.
Honestly, it almost takes a lawyer to get through the paperwork of starting out a business. Of course, if you're starting up a business, that last thing you can afford is some lawyer fees to get started (note, not only do you not have income coming in now, it may be awhile before you do). Cuban suggests allowing businesses with fewer than 25 employees to begin tax-free as a way of stimulating small business growth.
Seems smart.
I got a colorful email from a small-business owner a while back that mentioned some of the frustrations with working with the KCMO City Council in getting certain variences and change of use rules changed for the opening of his business. I'm going to copy this little piece of the email so you get the gist -- including the author's colorful language that I think sums up the frustration.
"I'd really like to have several more locations around Kansas City. It just takes so much time and money to get through all the fucking codes and bullshit that I start to lose hope and energy... I begin to consider playing video games and fucking off rather than having my own business.
Sorry for the rant I'm just frustrated with all the red tape and bull shit. The city is comprised of really nice people it's just the fucking rules that slow everything down and some of them don't make a fuck bit of sense."
I think you get the idea.
If Kansas City wants small businesses to start up to help stimulate growth in the city, and to stimulate the job market, they should make it easier on small business owners. Fewer rules. Fewer restrictions. In fact, encourage small businesses to open. Encourage entrepreneurship. Make the rules few, and easy to follow. Allow people to be able to open a business without needing to get a lawyer to wade through all the forms and paperwork. It's business. It's growth. We should encourage growth instead of making huge barriers to entry.
Several locally owned Kansas City bars and restaurants have closed due to the combined opening of the Power and Light District and the smoking ban. We're making it FAR too difficult on local business owners.
Earlier this month, we offered
$240 million in economic incentives to Bombardier to build a manufacturing plant in Kansas City that would have brought with it 2,000 jobs. Maybe its time to start focusing on growing our city from within, by making it NOT a pain in the butt for local people to start their own company, instead of throwing hundreds of millions of dollars at other companies to get them to relocate here. There is no reason to make it that difficult.
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