Government should butt out! (Economics).

• Position: Small business management - Brief Article

The less that government gets involved, the more small business will thrive, maintains Phillip Phan, professor of entrepreneurship, Rensselaer Polytechnic Institute, Troy, N.Y. "If the U.S. is to learn anything from Taiwan, it's that big government should stay out of small business." In the depths of the Asian economic crisis, Taiwan announced an annual growth of four percent. That is because nearly 70% of its economy is based on small to medium enterprises.

As a business counselor for the New York State Small Business Administration and consultant to the World Bank, Phan urges less government interference with small business. In New York City, small-business owners spend 60% of their time and resources during the start-up phase clearing government regulations. If the state and Federal governments remove barriers to creativity and entrepreneurial drive--such as unnecessary licensing, fees, and permits--more people will consider...