According to the report by Reason Public Policy Institute, small businesses, often referred to as microenterprises, are crucial to revitalizing poor areas. Everybody is checking the economy's vital signs for indications of its future health. The study examined the regulatory environments in Boston, Dallas, Atlanta, and Los Angeles, finding numerous examples of unnecessary regulation, Cities and states frequently place strict licensing requirements on enterprises like African-style hair braiding, often requiring costly formal training in areas unrelated to their profession. The Texas Cosmetology Commission relentlessly pursued Dallas hairbraider Dana Brantley in 1995 and 1997 for operating without a cosmetology license. For this offense, she received a criminal conviction.
Street vendors are frequently subject to heavy regulations .
In Massachusetts, the Public Health Code completely prohibits the in-home preparation of food for sale, except under conditions making it impractical for the street vendor. One's household kitchen simply may not be used for commercial purposes regardless of how safe the food preparation is. Taxicab regulations often make it nearly impossible for an entrepreneur to start his own car service . Some cities set a maximum number of licenses, and if the cap is binding, no one may legally start a new taxicab business. Other cities, like Los Angeles, grant franchises to taxicab companies with a minimum number of vehicles, eliminating the opportunity for an entrepreneur to enter the market with one car or on a part-time basis and build his company over time.