Kevin Price
The truth about America and small business
By Kevin Price
June 6, 2015

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 to be filed with the Office of Federal Contract Compliance Programs until an audit is conducted."

One of the most noted laws of this type – the Family and Medical Leave Act – is devastating to those with 50 or more employees, as it "establishes policy of 12 weeks of unpaid leave (and in some instances more than 12 weeks) when employee is covered by provisions of the Act."

The Health Maintenance Organization Act takes aim at companies with 25 or more employees, requiring "employers with 25 or more employees who are already providing health insurance benefits(contributory or non-contributory) to offer an alternative HMO option to employees, if a qualified HMO is available in the area where at least 25 of the employees live. The Act provides for assessment of a civil penalty of up to $10,000 for each 30-day period in which this option is not provided (but certain exceptions extend the deadline, such as where existing contract is in effect which sets annual enrollment dates, in which case the HMO option must be provided during the next open enrollment period)."

Even companies with as few as 20 employees are vulnerable to these oppressive government regulations, such as the Consolidated Omnibus Budget Reconciliation Act (COBRA), which requires "group health plans sponsored by employers in the prior year to offer employees and other covered dependents the opportunity for a temporary extension of health coverage in certain specific instances; imposes notification and record keeping requirements on employer." Under Obama it has gotten even harder for employers, since they have to share part of the financial burden of paying the premiums, if the unemployment was the result of a layoff.

This does not even include the huge impact the Affordable Care Act has on business, driving employers to hire fewer and to hire as many as possible part time.

The list goes on and the federal government is not the only ones who have such bills. California, Hawaii, New Jersey, New York, Rhode Island, Washington, are among the many states that have tough laws that harm anything but the smallest of companies.

The bottom line is that government regulations place limits on the growth of businesses in this country. This is not charming or romantic, but oppressive. It is time to get over the myths and legends of America's "small business character." It is time to unleash small businesses so they can achieve their image of the American Dream and not the one designed by the government.

© Kevin Price


The views expressed by RenewAmerica columnists are their own and do not necessarily reflect the position of RenewAmerica or its affiliates.
(See RenewAmerica's publishing standards.)

Click to enlarge

Kevin Price

Kevin Price is Publisher and Editor in Chief of

His background is eclectic and includes years of experience in both business and public policy, as well as two decades of experience in broadcast journalism. He was an aide to U.S. Senator Gordon Humphrey (R-NH) and later went on to work in policy areas with some of the nation's leading think tanks including the National Center for Public Policy Research and was part of the Heritage Foundation's Annual Guide to Public Policy Experts... (more)


Receive future articles by Kevin Price: Click here

More by this author


Stephen Stone
The most egregious lies Evan McMullin and the media have told about Sen. Mike Lee

Siena Hoefling
Protect the Children: Update with VIDEO

Stephen Stone
Flashback: Dems' fake claim that Trump and Utah congressional hopeful Burgess Owens want 'renewed nuclear testing' blows up when examined

Jerry Newcombe
The gift of life

Cliff Kincaid
The U.S. is losing the world war

Louie Verrecchio
Of patriarchs and pansies: The war against manliness

Pete Riehm
Will social media ever allow free speech?

Randy Engel
The life and times of Archbishop John R. Quinn & friends: A study of the West Coast homosexual network, Part I

Rev. Mark H. Creech
Revelation Chapter 13: The rise of the false prophet

Curtis Dahlgren
'Hammer and Tickle' by Ben Lewis, a book review

Paul Cameron
History’s biggest con? The trans scam

Cliff Kincaid
Constitutional principles and the debt deal

Michael Bresciani
Why is America running away from the protection of the living God?

Cliff Kincaid
Why the Marxists always win

Bruce Deitrick Price
Now here's my plan: Let's fix education
  More columns


Click for full cartoon
More cartoons


Matt C. Abbott
Chris Adamo
Russ J. Alan
Bonnie Alba
Chuck Baldwin
Kevin J. Banet
J. Matt Barber
Fr. Tom Bartolomeo
. . .
[See more]

Sister sites