The Real Reason Business Stay Small in the US

By Kevin Price, Publisher and Editor in Chief,  USDR

There is a mythology about businesses in America. We see that the vast majority of the companies in this country are small (50 or fewer employees) and conclude it is a unique part of the nation’s character. We are told that small businesses are right up there with apple pie, hot dogs, baseball and other uniquely U.S. institutions. The vast majority of jobs in the U.S. are made by small businesses (roughly 80 percent); but the reality is those companies could make many more employment opportunities except America’s businesses are forced to stay small because of government forces.

I visited with Judith Sadler, who is a leading authority on labor law on the Price of Business show. I asked her to give me some examples of how the government keeps enterprises small. She gave me quite a list:

For companies with 11 or more employees, OSHA requires summary forms from all employers.

When there are 50 or more employees (with federal contracts involved) and for all businesses over 100, Affirmative Action programs require “contractors and subcontractors to create and implement AAPs annually to provide statistical analysis of the employer’s “underutilization” of individuals from certain protected classes and include the steps that will be taken to improve their representation in the employer’s workforce. Separate Affirmative Action Plans (AAPs) must be created for women and minorities, Vietnam era and disabled veterans, and disabled individuals. The plans must be written each year, they do not have… (read more)

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