1. CLOSED FOR BUSINESS: HOW LOCAL
GOVERNMENTS ARE STRANGLING BUSINESSES
AND ENTREPRENEURS IN RED TAPE
November 14, 2011
Valladolid, Spain

2. WORLD BANK: DOING
BUSINESS 2012
A fundamental premise of Doing Business is that economic activity
requires good rules that are transparent and accessible to all. Such
regulations should be efficient, striking a balance between safeguarding
some important aspects of the business environment and avoiding
distortions that impose unreasonable costs on businesses. Where
business regulation is burdensome and competition limited, success
depends more on whom you know than on what you can do. But where
regulations are relatively easy to comply with and accessible to all who
need to use them, anyone with talent and a good idea should
be able to start and grow a business in the formal sector.
UNITED STATES RANKED FOURTH BY WORLD BANK FOR EASE
OF DOING BUSINESS

3. STILL STIFLED BY RED
TAPE

4. CASE STUDY:
MILWAUKEE,
WISCONSIN, USA

5. PRINCIPAL AREAS OF
REGULATION AT THE LOCAL
LEVEL
Zoning and Occupancy
Permits (Where?)
Business Licensing (Who?)
Fees and Red Tape (How?)
Industry-specific regulation
(What?)
Total cost of regulation on
U.S. small business =
$1.75 trillion dollars

6. Example: Restaurant Startup
Fees
Bicycle Parking Facility Permit: $16
Class ―B‖ Fermented Malt Beverage Retailer‘s
License: $100
Class ―B‖ Manager‘s License: $25
Class ―B‖ Retailer‘s Intoxicating Liquor License:
‖
$500
Class ―B‖ Retailer‘s Service Bar License: $600
Driveway Permit: $153
Extended Hours Establishment Fee: $250
Flower Pot Holders: $40
Temporary occupancy of sidewalk permit: $90-140
Sidewalk Area Dining Permit: $115 plus 28 cents
per square foot
Food dealer‘s license: $383-1,356 depending on
anticipated sales
Sign permit fee: One percent of the cost of the sign
(minimum $50)
TOTAL: minimum $2332.00

7. LICENSING: BARRIER TO
ENTRY
Milwaukee allows only
240 taxis in the whole
city

8. HARMING CREATIVITY
“In most parts of the world small and
medium-size businesses are often the
main job creators. Yet entrepreneurs in
developing economies tend to encounter
greater obstacles than their counterparts
in high-income economies. Finding
qualified staff and dealing with lack of
adequate infrastructure are among the
challenges. Overly burdensome
regulations and inefficient institutions
that discourage the creation and
expansion of businesses compound the
problems.”
-World Bank, Doing Business 2012

9. WHO BENEFITS?

10. WHAT IS TO BE DONE?
Centralize information
Streamline processes
Reduce licensing in favor
of certification
Relax zoning/site
requirements
Reduce fees that only
enrich government
budgets
Tie regulation to health
and safety