An Annotated Bibliography

Impact of Government Regulation on Small Businesses in the United States

Autio, E. and Fu, K. (2014). Economic and political institutions and entry into formal and informal entrepreneurship. Asia Pacific Journal of Management, 32(1), pp.67-94.

The authors explore the influence of political and economic institutions towards informal and formal small businesses across 18 nations in Asia-Pacific during 2001-2010. The article identifies that the informal sector accounts for 58% in South and East Asia, 51% in Latin America and the Caribbean region, and 50% of non-agricultural employment in Sub-Saharan Africa. The authors explain that economic and political institutions influence the aspect of inequality, poverty, and entrepreneurship in small businesses. The article achieved its objective by using the Global Entrepreneurship Monitor (GEM) dataset, which collects data each year on entrepreneurship in more than 70 countries. According to the findings of the study, there is a negative association between political and economic institutions and start-ups in small businesses. In addition, the authors argue that there is a positive association between political and economic institutions to formal entrepreneurship. The reason why I chose this article is that it not only explores the impact of government regulations on small businesses (informal entrepreneurship) but also on formal entrepreneurship. Such a comparison will help in my research informing the literature review for the study. 

Dixon, L., Gates, S., Kapur, K., Seabury, S. and Talley, E. (2019). The Impact of Regulation and Litigation on Small Businesses and Entrepreneurship: An Overview. JSTOR.

The author explores the major impact of legal and regulatory environments on small and large firms. The article commences by explaining that there are variations between the impact of legal and regulatory environments between small and large organizations. The authors attained their objectives by exploring four key areas: HI regulation, employment law and regulation, environmental law, and corporate and securities law. This was attained by following the regulatory reform process by particularly addressing the impact of the regulatory environment on small businesses where the authors argue that some small businesses are exempted from the regulation or a government may apply varying enforcement mechanisms between large and small businesses. The researchers conclude with an argument that government regulation greatly influences small businesses differently from a large business. This article will be of benefit to my research as it explores the key features of the regulatory and policy environments and the way they differentiate between the large and small organizations. Dixon et al. (2019) apply a similar aspect in exploring the research problem by differentiating the key features of large and small organizations, as it relates to the regulatory and policy environments. Besides, Dixon et al. (2019) explore the response of small businesses to the regulatory and policy environments in contrast to large businesses responses.

Shields, J. and Shelleman, J. (2015). Integrating sustainability into SMEs strategy. Journal of Small Business Strategy, 25(2).

The article starts by explaining the aspect of Small-to-Medium Enterprises (SMEs) and the way they have increased in the U.S., which calls for a need to accommodate increasingly global sustainability reporting requirements through proactive sustainability. The issues experienced by SMEs are influenced by the lack of a structured approach, which has led to contemporary sustainability issues. One aspect that Shield and Shelleman (2015) have argued is the use of a triple bottom line, which encompasses social, environmental, and economic performance, which is related to corporate sustainability. The authors call for an organized approach that is influenced by changing governmental regulations, as well as the emergency of perceived mandate to address sustainability concerning resource constraint, which is a feature for small businesses. They explore the application of SWOT analysis on SMEs, its importance, and challenges to this group. The use of SWOT analysis helps in identifying external factors like government regulations that affect small businesses. Unlike the above two articles that explore exhaustively on government regulations, Shields and Shellman tend to apply the triple bottom line, which includes the factor of corporate sustainability to small-medium enterprises. In this case, I feel the article has vital information that will be used as the foundation for this research in the literature review.  

Kraja, Y., Osmani, E. and Molla, F. (2014). The Role of the Government Policy for Support the SME-s. Academic Journal of Interdisciplinary Studies.

The authors explore the significance of government regulations and policies to small-medium enterprises in the U.S. The researcher conducted their study in the Albanian economy where the SMEs contribute heavily to the economy of the region. The authors identify that a government may directly or indirectly influence business operations among the SMEs. They explain that factors like taxation are the contributing factor to why the majority of businesses operate informally. This study is of significance as it evaluates how the government regulations and policies influence the success of SMEs. The author concludes that there is a positive correlation between SMEs performance and government policies, which is an indication that supporting central and local government regulations encourages SMEs by providing incentives to the business. The authors give recommendations on how the government can increase the success of SMEs through funding and policies encouraging SMEs through a positive business environment. Unlike other articles, Kraja, Osmani, and Molla explore the level and the impact of local government in developing SMEs by assessing if the government is developing SMEs and if it is practical to the contemporary conditions. Besides, this research was conducted in a developing country. In this case, its content will help me in founding the core and the basis of the research problem. 

Smallbone, D. and Welter, F. (2001). The Role of Government in SME Development in Transition Economies. International Small Business Journal: Researching Entrepreneurship, 19(4), pp.63-77.

Smallbone and Welter explore the role of the government in developing economies at varying phases of market reform. The authors suggest that in industrialized countries like the U.S., the State highly regulates the pace of SMEs as it is a mature economy. This is because the government exerts external factors to influence the pace and the nature of small businesses rather than direct support. They attained their objective by exploring the business environment in Moldova, Belarus, and Ukraine. The authors identify some of their study limitation, which is the use of economies with a small percent of small businesses. Although this is a major throwback for the study, I feel that this study will be efficient for the upcoming research. Unlike Kraja, Osmani, and Molla (2014) who fails to explore the situation in the U.S., Smallbone, and Welter explores the impact of government regulations in the US. 

Chittenden, F., Kauser, S., & Poutziouris, P. (2003). Tax Regulation and Small Business in the USA, UK, Australia and New Zealand. International Small Business Journal: Researching Entrepreneurship, 21(1), 93-115. doi: 10.1177/0266242603021001244

The authors explore the compliance costs of tax regulations in New Zealand, Australia, the UK, and the U.S. The article explores the aspect of government regulations on small businesses in four developed countries.  The article identifies that the compliance cost of taxation in the UK and the USA follows the largest single element of the compliance burden for SMEs and they state that the same situation is similar in New Zealand and Australia. The authors concluded that the countries have applied the model of simplifying initiatives and deregulation where they state that there is no direct correction with tax regulations. This article contains the aspect of tax regulation and explores four developed countries, unlike Kraja, Osmani, and Molla who follow developing countries for their argument. Therefore, Chittenden provides a basis for my research and in particular the aspect of compliance cost of tax regulation concerning small businesses an aspect not discussed by any other authors above.

References

Autio, E. and Fu, K. (2014). Economic and political institutions and entry into formal and informal entrepreneurship. Asia Pacific Journal of Management, 32(1), pp.67-94.

Chittenden, F., Kauser, S., & Poutziouris, P. (2003). Tax Regulation and Small Business in the USA, UK, Australia and New Zealand. International Small Business Journal: Researching Entrepreneurship, 21(1), 93-115. doi: 10.1177/0266242603021001244

Dixon, L., Gates, S., Kapur, K., Seabury, S. and Talley, E. (2019). The Impact of Regulation and Litigation on Small Businesses and Entrepreneurship: An Overview. JSTOR.

Kraja, Y., Osmani, E. and Molla, F. (2014). The Role of the Government Policy for Support the SME-s. Academic Journal of Interdisciplinary Studies.

Shields, J. and Shelleman, J. (2015). Integrating sustainability into SMEs strategy. Journal of Small Business Strategy, 25(2).

Smallbone, D. and Welter, F. (2001). The Role of Government in SME Development in Transition Economies. International Small Business Journal: Researching Entrepreneurship, 19(4), pp.63-77.