If you think it’s hard to start a business here in the United States, you might just consider how hard people perceive it in other countries.  A whopping 96% of Italians say their government makes it hard to start a business. Greece, Spain and Portugal aren’t far behind â€" with 93%, 82% and 80% respectively saying their governments make it hard.
And what are some of the places where entrepreneurs think their government doesn’t give them such a hard time?  Try Malta, Sweden and Luxembourg.
This chart from a recent Gallup Poll says a lot about the perception of how regulations hurt small business and startups in Europe today:
Meanwhile, back in the United States, don’t pat yourselves on the back yet.  We Americans are not immune from our own perceptions about government interference and obstacles.
There’s a strong perception among small businesses that regulations hurt them.  Citing different Gallup polls from 2013, Professor Scott Shane pointed out how small business owners perceive regulations as being a problem. And business owners â€" the ones who actually have to comply with regulations - see regulations as more of a hindrance than the average citizen.
Shane wrote:
“Similarly, 72 percent of small business owners said that government regulations were a problem, while only 48 percent of American adults said so.  * * *  Taxes and regulation are problematic for a larger fraction of small business owners than Americans overall.â€
With unemployment still high in Europe, you’d think entrepreneurship could be part of the answer.  Say the Gallup pollsters:
“While residents in most EU countries are more likely to feel the government makes it hard, rather than easy, to start a business, this perception is particularly troublesome to future growth in countries such as Greece and Spain, where unemployment is not expected to drop much lower than 26% this year. New jobs in these and several other European countries will largely need to come from the private sector after austerity measures forced some of the deepest public-sector job cuts in a generation.â€
Many Europeans have a good opinion of entrepreneurs. Â They believe entrepreneurs to be good role models, a Gallup Poll says. Â Compare this chart to the one above:
And what about the United States? Â According to the 2014 Edelman Trust Barometer, small businesses and family-owned businesses are trusted more than their larger counterparts or government in North America. Â Family owned businesses are trusted by 85% and small and midsize businesses are trusted by 78%.
Bottom line: The majority of people in the United States and Europe view entrepreneurs and small businesses owners favorably. Â Yet those same business owners and entrepreneurs believe their governments get in their way far too much and that regulations hurt small business and startups.
Italian Entrepreneur Photo via Shutterstock
