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Business regulation as an impediment to the transition from welfare to self-employment

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Notes

  1. U.S. Internal Revenue Service, SOI Bulletin (Washington, D.C.: IRS, various editions).

  2. David L. Birch, Job Generation Process (Cambridge, Mass.: Joint Center for Neighborhood and Regional Development, M.I.T., 1979).

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  3. U.S. Small Business Administration, Office of Advocacy, Handbook of Small Business Data (Washington, D.C.: U.S. Government Printing Office, 1994), p. 54.

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  4. U.S. Department of Commerce, Bureau of the Census, Characteristics of Business Ownership, 1987 Economic Census (Washington, D.C.: U.S.Government Printing Office, December, 1991); Arnold C. Cooper, William C. Dunkelberg, Carolyn Y. Woo, and William J. Dennis, Jr., New Business in America: The Firms & Their Owners (Washington, D.C.: NFIB Education Foundation, 1990); William J. Dennis, Jr., Wells Fargo/NFIB Series on Business Starts and Stops (Washington, D.C.: NFIB Education Foundation, 1997).

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  5. INC., October, 1992, p. 72.

  6. Robert A. Mamis, “Power of Poverty,” INC., August, 1997, pp. 40–51.

  7. Joanne H. Pratt, Myths and Realities of Working at Home: Characteristics of Homebased Business Owners and Telecommuters, prepared for the Office for Advocacy, U.S. Small Business Administration, contract no. SBA-6647-OA-91, 1993.

  8. Dennis, Wells Fargo/NFIB Series.

  9. Ibid.

  10. The background, progress, and result of the experiments can be found in three volumes published by the Employment and Training Administration of the U.S. Department of Labor: Self-Employment Programs for Unemployed Workers, Unemployment Insurance Occasional Paper 92–2, 1992; Self-Employment as a Reemployment Option: Demonstration Results and National Legislation, Unemployment Insurance Occasional Paper 94–3, 1994; and Self-Employment Programs: A New Reemployment Strategy, Final Report on the UI Self-Employment Demonstration, 95–4, 1995.

  11. Those invited included only a targeted population. For current purposes, the most important omitted group included those who had not filed their unemployment claim recently, i.e., the longer term unemployed.

  12. Self-Employment Programs: A New Reemployment Strategy, Final Report, p. x.

  13. Author's conversations with personnel in the Unemployment Insurance Service at the U.S. Department of Labor. A report detailing the results of state programs to date is expected to be published in mid-December of this year.

  14. David S. Evans and Linda S. Leighton, Small Business Formation by Unemployed Workers, prepared for the Office for Advocacy, U.S. Small Business Administration, contract no. SBA-2102-AER-87, January, 1989, and Dennis, Wells Fargo/NFIB Series. Note that this discussion is focused on the direct movement of individuals from unemployment to self-employment, not the relationship between unemployment rates and new business formations. The latter has been the subject of some research and controversy. See David Audretsch and Jim Jin, “A Reconciliation of the Unemployment — New Firm Startup Paradox,” Small Business Economics (October 1994), pp. 381–85.

  15. See, for example, Albert Shapero and Lisa Sokol, “The Social Dimensions of Entrepreneurship.” In Calvin A. Kent, Donald L. Sexton, and Karl H. Vesper, eds. Encyclopedia of Entrepreneurship (Englewood Cliffs, N.J.: Prentice-Hall, 1982).

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  16. Dennis, Wells Fargo/NFIB Series.

  17. William J. Dennis, Jr., The Public Reviews Small Business (Washington, D.C.: NFIB Education Foundation, 1997).

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  18. Dennis, Wells Fargo/NFIB Series.

  19. Cooper et. al., New Business in America.

  20. United States Code Congressional and Administrative News, 104th Congress-Second Session, Vol. 8 (St. Paul, Minn.: West Publishing, October, 1996), p. 110 STAT. 2133.

  21. Paul Reynolds, “The National Study of U.S. Business Start-ups: Background and Progress Report,” paper presented at the Conference on the Dynamics of Employment and Industry Evolution, Mannheim, Germany, January 19-21, 1995.

  22. Cooper et. al., New Business in America.

  23. Thomas D. Hopkins, A Survey of Regulatory Burdens, prepared for the Office for Advocacy, U.S. Small Business Administration, contract no. SBA-8029-OA-93, 1995.

  24. Dana Berliner, How Detroit Drives Out Motor City Entrepreneurs (Washington, D.C.: Institute for Justice, 1996). The Institute for Justice has produced a marvellous series of seven monographs on local regulatory impediments to the creation and operation of the very smallest businesses. Each monograph focuses on a single city. The cities include: Baltimore, Boston, Charlotte, Detroit, New York, San Antonio, and San Diego. This series is required reading for anyone interested in the topic.

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  25. Author's conversations with Los Angeles Tax Assessor's Office. The 6,200 figure represents the number of home-based businesses recently registered. Home Office Computing magazine reports that Los Angeles's estimated home-based business population is 20,000. Dan Cray, “L.A. Uproar Over Back Taxes,” Home Office Computing, July, 1995.

  26. Dana Berliner, Running Boston’s Bureaucratic Marathon (Washington, D.C.: Institute for Justice, 1996).

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  27. Sandy Hoyle Bolick, “Home Businesses Face Tough Regulation,” Nashville Business Journal, March 11, 1996.

  28. William H. Mellor, Is New York City Killing Entrepreneurship? (Washington, D.C.: Institute for Justice, 1996).

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  29. Berliner, Running Boston’s Bureaucratic Marathon.

  30. David P. Bianco, ed. National Directory of State Business Licensing and Regulation (New York: Gale Research, 1994), pp. 273–86.

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  31. Ibid.

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  32. Ibid.

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  33. Scott G. Bullock, Baltimore: No Harbor for Entrepreneurs (Washington, D.C.: Institute for Justice, 1996).

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  34. Teresa Burney, “Home Businesses Can Run Afoul of Zoning Laws,” St. Petersburg Times, March 31, 1997.

  35. Berliner, How Detroit Drives Out Motor City Entrepreneurs.

  36. Stephen Fishman, Hiring Independent Contractors: The Employer’s Legal Guide (Berkeley, Calif.: Nolo Press, 1996), pp. 3–7.

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  37. Berliner, How Detroit Drives Out Motor City Entrepreneurs.

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Dennis, W.J. Business regulation as an impediment to the transition from welfare to self-employment. J Labor Res 19, 263–276 (1998). https://doi.org/10.1007/s12122-998-1015-1

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