What are the biggest obstacles facing small businesses? Contrary to conventional wisdom, it isn’t always government. In fact, for many small businesses in California, the main source of bureaucracy, red tape, interference, fine-print traps, and threats to financial stability is a big corporation, not the government.
Tens of thousands of California entrepreneurs have invested in franchised businesses like McDonald’s, 7-Eleven, and Subway because the franchisor corporations promise that ownership in a brand outlet offers technical assistance and the relative safety of a known brand; instead, too many find that they are entering a fundamentally unequal and imbalanced corporate relationship that puts their life work and life savings at risk. As a result, small businesses that are franchisees – which represent 80,000 businesses and one million jobs in California, are having a harder and harder time keeping their businesses afloat.