STUDY SHOWS THAT IF SMALL BUSINESS PROSPERS POVERTY RATES DECLINE
INDIANAPOLIS (December 8, 2014): Today, the National Federation of Independent Business is calling on lawmakers to review a recently released study which directly correlates narrowing the wage gap and lowering poverty rates to cutting red tape.
The study, entitled “Poverty and Entrepreneurship in Indiana: Widening the Road Out of Poverty” was conducted by Associate Professor Douglas Noonan at the School of Public and Environmental Affairs (SPEA), Indiana University – Purdue University Indianapolis. Over the course of a year, data was collected to “study the intersection of poverty, entrepreneurship, and regulation in Indiana.” The results show an interesting correlation between small businesses and bureaucracy.
“Hoosier business owners are well versed in overly burdensome regulations unfortunately, but the results of this study are startling” Said NFIB/IN state director Barbara Quandt. “There is a direct correlation between an excessive regulatory structure and its disproportionate impact on low income entrepreneurs. It is time for our law makers to take notice, reduce regulation, and make Indiana a friendly small business environment.”
Data collected clearly demonstrates that new business formation being made easier by law makers would be followed by lower county poverty rates and increased opportunity for those living in the areas impacted by small business.
Continued Quandt, “Low income areas of Indiana are desperate for people to make an investment in their future. Small business is the perfect answer to improve the economies in these areas and this study clearly shows that as new businesses form, poverty rates decrease and provide more opportunity for the residents.”