Inc.com reports on a study by the Center for Applied Rural Innovation (CARI) that finds that 20% rural Nebraskans are small business owners. This is a remarkable finding and one that supports the importance of entrepreneurship as a tool for economic development. The rural mid-west has seen a significant economic decline and population loss. If entrepreneurial activity can turn that around that will be a positive development indeed.
Most rural business owners turn to entrepreneurship as the only opportunity in a small town, said Cantrell. "You either have to leave an area you love to seek wage employment in a larger city, or you have to engage in an entrepreneurial activity," he said.
What is somewhat confusing to me is why both the study and Inc.com seem to then go on to focus on health insurance as a barrier. Now don't get me wrong; health insurance is a big worry for many aspiring entrepreneurs. But so is no access to capital, a lack of experience and knowledge in an industry, tax policy, and regulations. In fact, most of these will consistent rank much higher than health insurance as a barrier to business ownership. So why focus specifically on health insurance?
Interestingly, if you read the study you will find that the most significant barrier reported by the respondents was that being an entrepreneur requires "working longer hours" than traditional employment.
Why did the study only ask about health insurance and not about taxes, capital or other traditional barriers? Why did Inc.com report on the health insurance response and not the lack of desire to work long hours?
I am not exactly sure why CARI would bias a study this way, but I can wager a guess. First, there is a long history of mid-west farmers aligning with socialist policy (for example in Minnesota the liberal party is not called the Democratic Party, but the Democratic Farmer Labor party). Second, CARI is housed in the Department of Agricultural Economics at the University of Nebraska and most university economics departments tend to lean pretty far left. To their credit, CARI has several programs focused on entrepreneurship.
As for Inc.com, their political leanings have been well documented at this site. When forced to choose between their love for more government and their love for entrepreneurs, they will choose their love for more government almost every time. If the movement for federally funded health insurance ever picks up steam again watch for them to be front and center in support.
