The American Dream: A Voyage through Small Business Success and Government Obstacles

The American Dream is a testament to the power of innovation, hard work, and determination. It is a narrative of individuals who, with a great idea and a willingness to take risks, build empires from the ground up. From the halls of small businesses in Seattle to the bustling streets of Chicago, countless Americans embody this dream every day. Whether it’s a pizza franchise, a bakery, or a janitorial service, the stories of Ritu Shah-Burnham, Richard Clark, and Kenneth Jarosch are just a few examples of this broader journey.

Unveiling the Success Stories

Ritu Shah-Burnham had a dream of opening a pizza franchise in Seattle, Washington. Despite the challenges, she persevered and made it a reality. Richard Clark saw the need for janitorial services in fast-growing Northern Florida, and he grew his business to over 200 employees. Kenneth Jarosch, who oversees a bakery in Chicago started in 1959 by his father and grandfather, maintains that there’s always been one thing you can count on: delicious bread and pastries fresh from the Jarosch ovens. These stories are played out every day across America, in a million variations on the same theme: starting a business, running a business, and keeping a business going.

What It Takes to Make the Leap

Starting a small business in America is not an easy task, but it is a grand adventure. The United States leads the world in small business creation, with over 28 million small businesses. These businesses generate over 64% of all new private sector jobs. Moreover, every big business with thousands of employees started out as a small business. Figures like Bernie Marcus, who opened two hardware stores in Georgia, and Phil Knight, who sold running shoes out of the back of his car in Oregon, are just the tip of the iceberg of successful American startups. Companies like The Home Depot and Nike were born from these humble beginnings.

The American Government's Role in Supporting Small Businesses

Given the significance of small businesses to the American economy, one would think that the government at all levels would encourage their formation and growth. Indeed, you might expect the government's attitude to be "How can we help you?" However, it is the opposite. The government is, in fact, creating barriers to the success of these businesses through excessive taxes, over-regulation, and complicated compliance requirements.

Regulatory Burdens and Their Impact

One such example is the ongoing push to hike federal, state, and city minimum wage rates from about $7.25 an hour to as much as $15. Ritu Shah-Burnham experienced this firsthand. When the city of Seattle raised its minimum wage to $15 an hour, all the profit went out of her pizza parlor. She couldn’t raise prices high enough to cover her new costs, resulting in her business failing. Her employees lost both their jobs and their wages, which went down to zero.

The Affordable Care Act (ACA) also plays a significant role. The law requires businesses with at least 50 full-time employees to provide health insurance for all of them, with full-time defined as just 30 hours a week. This has forced many small companies to reduce their workers' hours to below 30 per week or become wary of expanding beyond 50 full-time employees. Richard Clark, whose workforce once numbered 200 people, is now down to 150 people with only 20 full-time employees. The rest are part-time, and he is struggling to survive the added costs of providing health insurance.

Kenneth Jarosch, who oversees a bakery in Chicago, faces another challenge. The bans on partially hydrogenated oil and trans fats, key ingredients in his baked goods, have forced him to reformulate his recipes. This will cost him a lot of time and money, and he is concerned about the taste and texture of his baked goods. If customers don’t like his bread, his business is in jeopardy, and his employees lose their jobs.

The Regulatory Iceberg

Adding to these challenges, there are over 175,000 pages of regulations from the federal government alone, with countless more from cities and states. Small businesses have to navigate these regulations every day. While some regulations are necessary, many are not. Some sound good on the campaign trail but create serious practical problems in real life. These regulations sap the resources of existing businesses and discourage new ones from starting. They are like an iceberg, frozen in time, blocking the path of American economic growth.

The Road Ahead

The American dream of small business success is facing these regulatory obstacles directly. It’s time for the government to rethink its approach and create an environment where small businesses can thrive without being weighed down by excessive regulations and burdensome compliance requirements. By doing so, we can ensure that the American dream remains a viable and attainable goal for future generations of entrepreneurs.

In conclusion, the American Dream is a powerful force that continues to inspire individuals across the United States. However, the road to success is fraught with challenges, and it is up to the government to support and enable these dreams to come true.