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According to an Inc. 5000 CEO survey, local government support for businesses has reached a record low, with 51.9% of CEOs saying they feel unsupported, a 10.6% decrease from the previous year, Inc. reports.
Business leaders report frustration with complicated regulations, permitting processes and having to work with multiple government offices. Research from the RAND Corporation shows that local governments play important roles in supporting entrepreneurship through policymaking, regulation, convening stakeholders and connecting businesses with resources.
However, many entrepreneurship programs created or expanded with temporary COVID-19 relief funding struggled to continue after that funding ran out. As a result, some local governments lack the funding and capacity to sustain business-support initiatives.
Experts also note that some local officials mistakenly believe entrepreneurship will happen organically without government involvement. Former Kansas City mayor Mark Funkhouser argues that local governments need to listen more closely to businesses and invest in people and technology to provide faster and smoother services.
