Latest Posts





Corona viruses exposes the need to structure regulation around small businesses

Small businesses make the majority of the American economy; they employ close to 50% of the labor force and make up the majority of job growth numbers. But small businesses are more fragile and susceptible to economic downturns. Small businesses operate on razor margins; the corona virus has revealed how thin. Service industries like restaurants and other small businesses are already laying off workers and closing for business. Most of them cannot foresee themselves riding out the effects of the corona virus if it persists for much longer.

Many small businesses are already not insulated to economic hits — only 50% last more than five years, according to the federal government’s Small Business Administration, and a steep reduction in business could prove devastating.

The pandemic has of course proven harmful for big businesses and individuals. But smaller businesses do face a lower chance of weathering it, considering most of them are service jobs and are labor intensive. What we can learn from this is the fact that small businesses are at the forefront of the economy . They feel every change much stronger, and so do their employees as well as customers.

So state policy makers should keep this fact in mind when formulating business policy. Policies like minimum wage, paid leave, occupational licensing affect small businesses because their costs rise by a bigger margin. Big businesses for the most part can absorb costs that come with regulation. It is the small businesses that have to be used as a benchmark when studying impact of policy.




Upcoming Events

  • Morning in Minnesota: St. Cloud

    Location: St. Cloud

    Sign up HERE! Courtyard by Marriott St. Cloud 404 West Saint Germain Street St. Cloud, MN, 56301 Please join Center of the American Experiment on Tuesday, July 21 for breakfast with Center policy fellow and education expert Catrin Wigfall as she explains K-12 education in the state and its persistent disparities despite decades of increased spending. Following her presentation, Catrin will lead a Q&A session. 7:30 AM Check In and Breakfast 8:00 AM Presentation 9:00 AM Conclude   Catrin Wigfall is a Policy Fellow at Center of the American Experiment. She is also the director of EducatedTeachersMN and EmployeeFreedomMN. Catrin’s…

    Register Now
  • Kristi Noem: The Courage to Reject a Shutdown

    Location: Online

    Sign up HERE! Join us Wednesday, July 8th for an interview with South Dakota Governor Kristi Noem over Zoom. In response to COVID-19, Noem defied the norm of a statewide shutdown and let South Dakotans choose for themselves what safety precautions to take. Tune in to this live online event to hear how Governor Noem preserved her state’s economy while still keeping citizens safe. Wednesday, July 8th at Noon CT Sign up HERE!  

    Register Now
  • Morning in Minnesota: Marshall

    Location: Marshall Golf Club

      Sign up for this event HERE! Please join Center of the American Experiment on Thursday, July 16 at Marshall Golf Club for a breakfast with Center economist, John Phelan, as he discusses Minnesota’s economic future. Following his presentation, John will lead a Q&A session. 7:30 AM Check In and Breakfast 8:00 AM Presentation 9:00 AM Conclude John Phelan is a graduate of Birkbeck College, University of London, where he earned a BSc in Economics, and of the London School of Economics where he earned an MSc. He worked in finance for ten years before becoming a professional economist. He…

    Register Now