Navigating the Complexities of Licensing and Regulation
Education entrepreneurship offers a world of creative possibilities and opportunities for innovation. However, amidst the excitement and passion for their craft, entrepreneurs often find themselves grappling with the arduous task of navigating the labyrinthine process of licensing and regulation. Debbie Carlson, founder and owner of Faces Etc of MN, a postsecondary career school for makeup artistry in Minneapolis, shares her personal experience of the challenges faced by small-business owners in the education sector.
A Daunting Application Process
When Carlson first embarked on her journey in 2011, launching Faces Etc of MN as a training center for aspiring makeup artists, she had little idea of the bureaucratic hurdles that awaited her. Initially treated as a simple training center, the Minnesota Office of Higher Education’s level of scrutiny escalated when she decided to formalize her enterprise as a postsecondary career school. The state demanded an exhaustive list of requirements, including a course catalog, financial records, inspection reports, proof of insurance, policy statements, and audit letters. Carlson, lacking the resources of a larger institution, was left to navigate the process alone.
Opposition and Roadblocks
As Carlson sought guidance from the state, she was met with little assistance. Regulators directed her to read the statutes and figure things out herself. The Minnesota Board of Cosmetology, rather than offering support, opposed her efforts. The state-mandated beauty school curriculum largely overlooked makeup artistry, and Carlson’s inclusion of the subject threatened industry insiders. They used their influence with the board to challenge her, adding another layer of complexity to her journey.
A Multitude of Government Entities
Carlson’s experience highlights the multitude of government entities that small-business owners must contend with. In addition to the Office of Higher Education and the Board of Cosmetology, she also had to navigate the requirements of county and city agencies. These entities have regulations related to zoning, fire safety, health, sanitation, and business licensing, each with its own set of steps and approvals. The lack of clear guidance and the absence of a comprehensive overview of the process made it even more challenging for Carlson to comply.
The Regulatory Burden
The burdensome nature of the licensing and regulation process extends beyond the education sector. A study conducted by Cities Work, a consulting initiative from the Institute for Justice, revealed the regulatory burden faced by various businesses in Minneapolis. For instance, opening a restaurant requires filling out 18 forms, interacting with 14 agencies, completing 10 in-person activities, and paying 14 fees totaling $13,973. The overall process involves a staggering 69 steps. Opening a barbershop involves 58 steps, while opening a bookstore requires 32 steps. These numbers highlight the excessive bureaucracy that hinders small-business owners.
Supporting Small-Business Owners
Small-business owners play a vital role in driving the economy, creating jobs, paying taxes, and providing valuable goods and services. Carlson’s own business has not only contributed to her local community but has also attracted students from neighboring states and even countries as far as Ecuador, Pakistan, and China. Instead of burdening entrepreneurs with complex processes and exorbitant fees, cities should prioritize supporting and facilitating their endeavors. While Minneapolis has made progress in reforming its approach through an online portal for entrepreneurs, there is still room for improvement, particularly in reducing fees, shortening delays, and simplifying processes.
Conclusion:
Debbie Carlson’s journey as an education entrepreneur highlights the challenges faced by small-business owners in the licensing and regulation process. The complex and time-consuming nature of these requirements can be overwhelming, detracting from the true passion and purpose entrepreneurs have for their craft. As cities strive to foster a thriving entrepreneurial ecosystem, it is crucial to streamline and simplify these processes, ensuring that small-business owners can focus on what they do best: creating value for their communities and making a positive impact on the world.
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