Difficulties Faced by Small Businesses in Illinois

Naperville small business law attorney, Gierach Law Firm, small businesses in Illinois, small business advocate position, Governor QuinnIllinois is considered one of the most difficult states in which to conduct business operations. The reasons for this difficulty include the high costs and barriers of entry into the market, such as the high taxes and licensing fees imposed by Springfield. Various complaints about the business climate in Illinois include the arguably unnecessary reporting requirements that need significant accounting and paperwork to achieve compliance, and the imposed hefty fines for non-compliance. The cost of doing business in Illinois is more easily absorbed by large corporations with huge amounts of money, while local small businesses find great difficulties when attempting to cover these expenses.

Governor Pat Quinn has acknowledged that the difficulties facing small businesses in Illinois do a disservice to the greater community and hinder trade and economic growth. This is because small businesses make up a big part of the current business operations in Illinois; three out of four Illinois employers are small businesses, and around 397,000 small business currently operate in the state.

Additionally, Governor Quinn has done a great job when it comes to acknowledging the unique struggles and obstacles facing small business owners in Illinois. In fact, at the beginning of this year, Governor Quinn created the first ever small business advocate position for his administration. However, nine months later this position has still not been filled.

The Five-Year Economic Development Plan

The Illinois Department of Commerce and Economic Opportunity (DCEO) has acknowledged the difficulties facing small businesses in Illinois, and has presented its five-year economic development plan in order to help Illinois become a state that is more hospitable to businesses.

The plan presented by the DCEO sees the small business advocate as being the person who will lead Illinois state and local interdepartmental reviews of the state’s current business regulations. The intended goal of this review would be to consolidate or remove those state business regulations that are found to be “wasteful, ineffective and/or unnecessary.” The question remains, however, whether such lofty and arguably necessary overhauls will ever become a reality since the small business advocate position has yet to be filled.

The economic development plan is correct when it says that issues regarding “wasteful, unnecessary, and ineffective” state business regulations must be be addressed as soon as possible. However, these should be addressed regardless of whether a small business advocate is officially appointed to the position.

The difficulty of tackling the issues facing small businesses operating in Illinois is made more complicated when one considers whether the Illinois state government is the proper party to reform the system, as it is sometimes difficult for state officials to effectively identify burdensome business regulations and fees from the useful ones.

Furthermore, though Gov. Quinn may have had noble intentions when creating the new small business advocate position, the failure to fill the position leads some to question whether Gov. Quinn is simply using rhetoric to seem pro-small business. Conversely, given that Gov. Quinn is facing reelection, others ponder whether he has failed to fill the position because whomever is appointed will arguably be under the media’s microscope and a negative review could impact Gov. Quinn’s media coverage.

If you require legal assistance from a Naperville small business law attorney, or if you have additional questions regarding the small business advocate, please contact the Gierach Law Firm today. We are prepared to help you solve any and all of your small business-related issues.