A pair of lawmakers recently forwarded correspondence to the Small Business Administration (SBA) Office of Advocacy requesting the agency research economic conditions for small business with the rise of occupational licensing.
Small Business Committee Chairman Steve Chabot (R-OH) and Subcommittee on Economic Growth, Tax, and Capital Access Chairman Dave Brat (R-VA) said they are concerned occupational licensing laws could have unintended consequences on small business.
“Small businesses lack the resources of their larger counterparts to navigate licensing barriers and low- and middle-income Americans typically cannot afford the high entrance costs and extensive educational requirements that licensing require,” the lawmakers wrote.
Officials said the Committee on Small Business has held a series of hearings during the current Congressional session addressing issues impacting the small business labor market and how occupational licensing influences small business and entrepreneurship.
“The Subcommittee has heard from witnesses referencing excessive licensing impedes small business growth and innovation,” the lawmakers wrote. “In a poll of self-employed business owners, 70 percent indicated occupational licensing negatively impacted their business. Given the Office of Advocacy’s mission to conduct research examining conditions for small businesses, the Committee requests that the Office of Advocacy conduct a study on the rise of occupational licenses across states and localities and the economic effects of licensing on small businesses and the small business labor market.”