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May 18, 2012

Tough licensing laws can block new firms

  • Licenses are intended to set standards in order to protect customers, but many state licensing laws can be erratic, illogical and burdensome.
    • By JOYCE M. ROSENBERG
    AP Business Writer

    NEW YORK — Many people dream of opening their own business. But some would-be entrepreneurs are finding that state licensing requirements are so arduous that it would take years and thousands of dollars before they ever would be able to hang out a shingle.

    Licenses are intended to set standards in order to protect customers. But many state licensing laws can be erratic, illogical and burdensome — and stop some people from launching a small business, says the Institute for Justice, a public interest law firm. A recent IJ study looked at 102 lower- and moderate-income occupations that require licenses, including those in which practitioners can start their own businesses. Among them: manicurists, barbers, massage therapists and people who have construction skills like painting and masonry.


     
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