State Antitrust Activity’s Impact on Small Business Entry
Robert M. Feinberg, April 2012
Potential business owners have a lot to debate before starting a business. For states this leads to the question, does a state’s level of antitrust enforcement have an impact on small business entry?
The study finds that lower levels of a state’s rate of economic growth (gross state product) and lower state and local tax burdens increase entry. But the research also found weak evidence for relatively high levels of a state’s antitrust enforcement increasing small business entry. Small firms view a vigorous anti-cartel policy as a desirable feature of a state’s law enforcement profile.