To encourage small business, lawmakers should take regulatory burden off entrepreneurs
A new study from the Ewing Marion Kauffman Foundation says that lawmakers looking to encourage business formation should work to streamline the process of business creation instead of focusing down the line.
According to the study, while entrepreneurs are willing to take risks in order to receive a significant return, they are also more conservative when it comes to saving for the future and their retirement.
Because of those results, researchers said that any legislation created to encourage more entrepreneurs to file an LLC should work to make it easier for them to see their potential financial return. To do that, researchers say that lawmakers should focus on making filing regulations and processes easier to understand, which would allow entrepreneurs more time to do what they do best – running the company.
The finding that small business owners are very aware of trying to save for retirement is surprising given the results of a recent study by the U.S. Small Business Administration. It found that just 36 percent of business owners had IRAs, and just one-third of them had contributed to those funds in the most recent year.