Regulations focus on compliance with rules, not performance. Most regulations, at both the state or local levels, focus on achieving set rules and benchmarks, not performance. Often businesses can provide a high quality product but be thwarted by the maze of local regulations. At the state level, this was clearly evident in laws regulating nail salons and hairbraiding. At the city level, rules regulating street vending and home-occupations were embedded in local zoning codes without reference to positive impacts from the business.
Regulations favor existing businesses.
In almost all cases, licensing created an entitlement to legally operating the business. Once a taxicab company received a medallion or Certificate of Convenience and Necessity, the likelihood the license would be revoked was small. Meanwhile, licensing and other requirements created significant obstacles to new entrepreneurs less familiar with the regulatory system. Regulations can significantly com-plicate business ownership. New business owners often had to become experts in subtle legalities regulating their specific businesses.