Maryland’s Complex Rules, Regulatory Burdens Earn Low Marks in Small Business Survey
The results are in for nationwide survey of small businesses, and for Maryland, there is room for improvement. The Third Annual Thumbtack.com Small Business Friendliness Survey asked 13,000 entrepreneurs in 38 states, including 350 in Maryland, to rate the business climate in their state using 11 different criteria.
While Maryland scored well in some categories, overall it ranked 27th and received a C-minus for its friendliness to small business.
The purpose of the survey was to determine the views of businesspeople on the impact of policies adopted in localities like Rockville or by the state legislature in Annapolis. Respondents provided quantitative ratings and anecdotal information on their experience in Maryland. They were most critical of the state’s business license requirements, tax code, and regulatory policies. The barriers that drew the greatest ire were licensing regulations, particularly licensing of professionals.
Maryland’s business owners questioned the state’s definition of a “small business” as one that earns approximately $1 million per year. That amount, used for some licensing and regulatory requirements, imposes burdens on smaller businesses that earn less, such as sole proprietorships.
On taxes, Maryland business owners faulted the complexity of the tax code more than the tax rates themselves, but the state still fared badly in this category.
Entrepreneurs praised the Maryland state government’s “Business in Maryland Made Easy website but called upon state agencies and legislators to take concrete steps to remove barriers.
Maryland scored well in such areas as ease of hiring, networking, and training. The state’s user-friendly online services, seminars and networking events for small businesses received praise, as did its partnerships with Maryland universities. Maryland won points for making the most of such resources as Dingman Center at the University of Maryland, the Alex Brown Center for Entrepreneurship, and the UMBC ACTiVATE entrepreneurship training program, designed to bring women into the technology sector.
According to the survey, Maryland also performed well at helping entrepreneurs find business incubators and co-working space for start-ups.
Some business owners commended Maryland for fostering small businesses, while others felt the state government impeded them and should get out of the way. Most seemed to want the state to support them with helpful training programs and customer service. They wanted regulatory requirements to be clearer and less duplicative, and they wanted to spend less time on paperwork and more time building their businesses.
If you are a small business in Maryland facing tax, licensing, regulatory, or other legal obstacles, the advice of a seasoned business lawyer can help. The corporate attorneys at Longman & Van Grack have experience helping new ventures and small enterprises as well as larger corporations overcome challenges and thrive. For a consultation call (301) 291-5027.
