Overregulation Hurts Immigrant and Low-income Entrepreneurs Trying to Achieve the American Dream
A new study released by the Pacific Research Institute finds that government has erected barriers to opportunity that make it very difficult for immigrant and low-income entrepreneurs to lift themselves out of poverty and climb the economic ladder.
 "Government-created barriers to opportunity are standing in the way of immigrants and low-income entrepreneurs launching a startup and accessing credit and capital to grow their business and hire more workers,” said Dr. Wayne Winegarden, PRI Senior Fellow in Business and Economics and the study's author.
“Breaking down these barriers and embracing free-market reforms are perhaps the most important things we can do to lift people out of poverty.”
“Entrepreneurship as an Opportunity to the American Dream” makes the case that empowering lower-income entrepreneurs is key to reducing poverty in the United States. However, harmful government policies and regulations make it tough for those at the bottom to get their startups off the ground, hire more people, and make a better life for their families.
Specifically, the study cites external research showing that:
- Small businesses with fewer than 50 employees pay nearly $12,000 per worker to comply with regulations.
- Complying with the tax code costs employers with 1 to 5 employees approximately $4,300 per employee.
- Starting a business takes an estimated 4.4 times the median net worth of the average African-American household and four times the median net worth of the average Latino family.
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