Jennifer and I had lunch with a libertarian politician on Sunday and we discussed all the work that just goes into getting rid of a city ordinance. If you are serious about liberty, you really need to take time to understand the issues that you personally may be able to have an impact on. Top 5 dangers to Small Business: (Hint – they are mostly government)

1) Regulation – To a regulator, the most serious offense is not properly complying with the licensing and rules made by regulators… and these rules can be oppressive, contradictory and subjective. Regulatory compliance is now more important to business survival than good customer relations. Once you are on the regulatory radar screen its best to close your doors, because that will be their goal… and they have more money than you do, as well as many experts with the ability and wherewithal to destroy you.

2) Lawsuits – No matter how hard you try to do a great job, the odds are you will be sued for something you did not do. Lawsuits cost money and take your focus off of your business, instead requiring you to focus on the efforts of an opportunist to use the legal system to extort you.

3) Availability of banking and capital – Banks are heavily regulated by many regulatory agencies. These agencies have different motivations, but none of these agencies are there to help you. The Department of Justice created “operation choke point”, for the purpose of denying access to banking for legal businesses that the Obama administration did not like. Lending is not typically accessible to small businesses. Even the Small Business Administration which is charged with providing access to capital for small business loans is trumped by the fact that if any of those loans goes bad, the regulators attack the banks, so they do not like to make SBA loans.

4) Changing laws – Nothing can wipe a business off the map faster than a new law or regulation which makes their product or practice illegal, or makes the delivery of your product impractical. This happens every year.

5) Competition – What used to be the biggest challenge in business is now dwarfed in danger by the activities of government.

No need to fret… If you are successful in surviving all these government attacks, they will happily take the lion’s share of your proceeds, or your freedom if you do not properly comply with their demands for the fruit of your labor.

And CNN thinks that the reduction in startup businesses is due to laziness…

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