IJ Clinic Releases Report on Regulations for Chicago Small Businesses

New Report Documents How Chicago Blocks New Businesses
May 11, 2009

Want to create a job in Chicago?  It is not that easy.

Especially in such tough economic times, people may be shocked to discover the lengths the city of Chicago and the state of Illinois go to to discourage entrepreneurs who seek to create jobs for themselves and others.  A new report released today by the Institute for Justice Clinic on Entrepreneurship documents how government regulations:

Force child play centers—where parents and caregivers play with their own kids—to go through the same licensing process as strip clubs.  In addition to having to cut through massive amounts of red tape and pay a fee of at least $770, particularly problematic for child play centers in Chicago is the requirement that such centers provide a valid lease for the premises before they open, meaning entrepreneurs have no choice but to take a high-stakes gamble and pay rent on a shuttered business for months while waiting for the city’s permission to open.  Rick Miller, owner of Day Frog—a child play center now located in downtown Chicago—found this licensing maze anything but child’s play.  His license was initially denied because his facility for kids was located across the street from Northwestern Memorial Hospital, which he hoped to serve.

Elizabeth Kregor