Cover: The Impact of Regulation and Litigation on Small Business and Entrepreneurship

The Impact of Regulation and Litigation on Small Business and Entrepreneurship

An Overview

Published Mar 3, 2006

by Lloyd Dixon, Susan M. Gates, Kanika Kapur, Seth A. Seabury, Eric Talley

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This working paper surveys existing research and the general state of knowledge on the impact of regulation and legislation on small business. It focuses on laws and regulations in four key regulatory areas: corporate securities, environmental protection, employment, and health insurance. In each of these areas, the review summarizes the regulatory environment, discusses the impact of the regulatory environment on small business and highlights issues in need of further research. In so doing, the review explores the ways small businesses and entrepreneurs behave differently from large businesses; the ways that policymakers, customers, employees and other organizations treat small businesses differently from larger businesses; and how these differences relate to the policy rationales that underlie regulation and the use of the tort system. A primary aim of this review is to identify additional research that would assist regulators, courts, legislatures, and others in balancing competing policy objectives. The report concludes with suggestions for future research.

The research described in this report was conducted by the Kauffman-RAND Center for the Study of Small Business and Regulation which is housed within the RAND Institute for Civil Justice.

This report is part of the RAND working paper series. RAND working papers are intended to share researchers' latest findings and to solicit informal peer review. They have been approved for circulation by RAND but may not have been formally edited or peer reviewed.

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