Association of Small Business Friendliness with Economic and Social Factors

John A. DeLeon, Dennis Lassila, Katherine Taken Smith and Lawrence Murphy Smith

World Economics, 2026, vol. 27, issue 2, 123-148

Abstract: In this study, an analysis is made of the relationship of small business friendliness, specifically, the ease of business entry, with economic and social factors. In addition, the study evaluates the relationship of small business friendliness to economic activity, as measured by real GDP growth. Theoretical underpinnings for the study include the theory of capitalism and complexity theory methodology. Findings show that small business friendliness is associated with lower taxation, higher economic freedom, better gender equality, and improved social progress. Further, a positive relationship was found between small business friendliness with economic activity, as measured by real GDP growth.

Date: 2026
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