With the election behind us and the start of the legislative season, policymakers have plenty of opportunities to make their mark. We have already seen a considerable number of issues highlighted in the pre-statement. One area I encourage policymakers to consider is lowering barriers to entrepreneurship in Arkansas.
Entrepreneurship – or starting and growing new businesses – is essential to economic growth because new and new businesses create almost all net job growth IN America. Entrepreneurship also benefits everyone, because research in the United States shows that for every 1% increase in the rate of entrepreneurship, the poverty rate decreases by 2%.
Making it easier to start and grow a business in Arkansas is the challenge I accepted when I became the manager of a new statewide coalition—the Arkansas Startup Coalition—created by Right to start, national non-profit organization that promotes entrepreneurship as a civic priority. The coalition was launched in August 2024 with 12 inaugural member organizations from across Arkansas. In 2025, she will be advancing entrepreneurship by bringing entrepreneurs together, identifying barriers to starting new businesses, proposing policies to remove those barriers, and engaging communities across the country.
This whole process starts with listening to entrepreneurs and those who support them. Entrepreneurs are the ones who are starting and developing new businesses, and they know the obstacles that stand in the way – from frustrations with government processes to broader concerns such as access to capital and the inability or unavailability of childcare.
In the many conversations I’ve had with Arkansas-based entrepreneurs and their supporters, many key obstacles have been mentioned. What I hear most is that state and local regulations are too often vague or burdensome; a one-stop-shop for entrepreneurs would be very welcome. Similarly, government contracts and other funding always seem to go to large companies, making it difficult for small businesses to gain access to a major player in the Arkansas economy. Additionally, fees and taxes can hurt a new business.
In that context, the city of Bentonville should be applauded for eliminating in December – by unanimous vote of the Municipal Council – as mandatory city business the registration fee and the corresponding renewal fee. One of the complaints Right to Start has repeatedly heard from entrepreneurs in Arkansas is that it doesn’t make sense for governments to require new businesses to pay a registration fee before they have revenue.
It is in the government’s interest that new businesses start and grow, allowing them to become tax-paying entities and expand further. Placing obstacles, such as registration and renewal fees, in their way is counterproductive.
Bentonville has now taken the lead in removing that hurdle. Other governmental jurisdictions throughout Arkansas should follow suit.
State and local officials can learn more about barriers to entrepreneurship by reviewing Right to Start “Field Guide for Policy Makers.“They highlight the main barriers and steps to eliminate those.
The beauty of entrepreneurship is that it can create economic opportunity in every community in the state because every community has heritage, culture and talent to build upon. That’s the goal: to create an environment in which every community in Arkansas values entrepreneurship and encourages new businesses to start and grow.
Policymakers can play a key role in this regard by doing three things:
First, talk to entrepreneurs and their supporters about the challenges they face. Understanding these challenges, which vary from community to community, is the first step toward addressing them.
Second, prioritizing the removal of barriers to entrepreneurship. Everyone will benefit.
Third, celebrate the new businesses in your communities and the entrepreneurs who created them. This is essential to demonstrate that the venture is valued.
The potential for entrepreneurship in Arkansas is tremendous, and the Arkansas Starters Coalition is committed to maximizing it. Policymakers can play a key role in making this happen.
Editor’s note: Alison Williams is the founder of willco consulting and serves as the manager of the Arkansas Startup Coalition for Right to Start, a national nonprofit that promotes entrepreneurship. The opinions expressed are those of the author.
