Darryl L. DePriest is the seventh presidentially appointed and Senate-confirmed Chief Counsel for the Office of Advocacy.
Prior to joining the Small Business Administration Office of...
April 2012 No. 395
State Antitrust Activity’s Impact on Small Business Entry
Robert M. Feinberg, Chevy Chase, MD.  pages.
Under contract number SBAHQ-11-M-0208.
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.
Scope and Methodology
The research modeled the determinants of establishment entry from 1998 to 2006 at the state level. Establishment entry for firms with fewer than 20 employees and 20 to 99 employees tends to be new firms, while for firms with 100 to 499 employees it tends to be new locations for an existing firm. Entry data were from the U.S. Census Bureau’s Statistics of U.S. Businesses, state antitrust enforcement data from the National Association of Attorney Generals, gross state product from the Bureau of Economic Analysis, tax data from the Census of Governments and other control variables were also included in the model. Federal antitrust enforcement was not included in the models.
Considering the prevalence and differences among retail, wholesale, and manufacturing, these major industries were pulled out for specific analysis.
This report was peer-reviewed consistent with Advocacy’s data quality guidelines. More information on this process can be obtained by contacting the director of economic research by email at firstname.lastname@example.org or by phone at (202) 205-6533.
Research from the Office of Advocacy is online at www.sba.gov/advocacy/847.
Copies are available
for purchase from:
National Technical Information Service
5285 Port Royal Road
Springfield, VA 22161
(800) 553-6847 or (703) 605-6000
TDD: (703) 487-4639
Order number: PB2012-107568
Paper A04 ($33.00)
Microfiche A04 ($27.00)
CD-ROM A00 ($30.00)
Download A00 ($15.00)
For email delivery of Advocacy’s newsletter, press, regulatory news, and research, visit http://web.sba.gov/list.