Exploring the case of The White Moustache

Abstract

Purpose Small and emerging business failure rates are high for numerous reasons. Government regulation has been cited as a contributing factor, yet literature documenting the actual effects of government regulation on small business is limited. The purpose of this paper is to clearly outline the regulatory compliance costs and effects on small businesses in the California dairy industry. Design/methodology/approach This paper applies a public choice framework to the history of dairy regulation and performs a case study on a small business, The White Moustache (TWM). The case study traces the burdens and costs of state dairy regulations placed on TWM as they sought the necessary permits to sell their artisan yogurt. Findings Strict and unresponsive regulation restricted TWM from selling their product. To comply with state dairy regulations, the direct costs to TWM would have increased by 70 percent. In addition, regulation caused two and a half years of delay before the company decided to leave the state. California’s dairy regulations place burdens on small dairy businesses that work as a strategic barrier to entry in the marketplace. Originality/value This case study highlights the direct effects that strict and unresponsive regulation can have on entrepreneurs and emerging businesses through a case study. Improving the understanding of how regulation affects small business can highlight new paths forward and help improve the small business failure rate in the USA.

Online but unlawful sales of unapproved and misbranded prescription drugs: Internet pharmacy compliance with Food and Drug Administration warning letters

“…Government regulatory compliance efforts can cause business failures. This has been shown in other industries, especially with smaller operations, due the burdensome cost of compliance or managerial inexperience with regulatory compliance (Amankwah-Amoah & Syllias, 2020; Yonk et al, 2017). Compliance costs include the direct cost of compliance as well as acquisition of knowledge related to regulatory compliance, such as hiring lawyers or other experts, and record-keeping and paperwork costs to demonstrate to regulators that compliance is being maintained or reinstated as with online pharmacies' responses to FDA warning letters (Lewis et al, 2015;Yonk et al, 2017).…”

Keterampilan Wirausaha Untuk Keberhasilan Usaha

“…Penelitian tentang keberhasilan usaha itu masih penting untuk diteliti karena mampu meningkatkan pertumbuhan ekonomi suatu negara (Shabir Hyder Robert Lussier, 2016). Penelitian tentang keberhasilan usaha pada industri makanan dan minuman juga diteliti oleh Yonk et al (2017). Keberhasilan usaha menjadi bahan perhatian para peneliti seperti yang dilakukan oleh Ahmad Ali Masykuri dan Yoyok Soesatyo (2013) bahwa pengangguran di indonesia masih sangat tinggi hal itu dikarenakan kebehasilan usaha di Indonesia masih kurang terutama pada Usaha Mikro Kecil, dan Menengah (UMKM) baik itu pengetahuan, modal, dan lain-lain seputar bisnis masih kurang.…”