In a report called Barriers to Business, the Institute for Justice (IJ) analyzed 20 US cities for how easy it is to open five different types of businesses
- restaurants, a retail bookstore, a food truck, a barbershop, and a home-based tutoring business
- The report found that in many cities, it was not even clear what all the requirements were to start a business.
The Results
- None of the cities received a 5/5 for the one-stop-shop, while Birmingham and Des Moines received a 0.
- Atlanta, Detroit, New Orleans, New York, Pittsburgh and San Francisco came close, with a 4/5
- And that shows that simply looking at one factor is not enough.
What this means:
- The report correctly observes that "You shouldn't need a law degree to start the small business of your dreams."
- It's no surprise that businesses are fleeing San Francisco, where it costs tens of thousands of dollars in fees to start a restaurant.
- What you can do about it:
- Local really matters. Shop around, by town or county, to see what the requirements are before committing to a location.
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