In a nutshell smaller government means less regulation and hopefully lower taxes.
This allows small businesses to spend less of their potential profits on compliance and taxes .... and use more of that to grow and avoid the pitfalls that come with living on the edge.
That is why businesses tend to go where government regulations support them and get out of high tax, high regulation states and municipalities (or countries).
Small business is leading the way to smaller government in the US.
It is becoming apparent that the 81-agency US federal government ..... combined with spending at the level the Pentagon consumes ..... simply cannot be afforded any more. It is also becoming apparent that big business, Wall Street, and the existing US federal government have been .... and still are .... in tremendous collusion.
World economics, the current recession, and events such as those in Dubai will restructure the mammoth government industrial complexes that have been growing since World War II. And small business will be there to fill in the gaps, pick up the pieces, and lead the way to more efficient and affordable approaches.
It is a hard way to go but it will happen by default. It's called going broke - printing money until its value is shot - taking credit from others until the risk is so high they take their assets and walk away - becoming a third rate player because the necessary foresight is lacking.
The future is bright for small business. . They are the inspirational members of the greater/industrial business base that will be tasked with picking up the pieces and re-inventing the future. So our government can follow along, using every form of unique inventiveness imaginable - efficiently created, using technology to the max and not seeking financing to the hilt - only the opportunity to succeed.
Put simply ....... small government is better because:
* It means that the government has less power to interfere.
* It means that it has less power to tax or commandeer your income.
* It means that the government has to be more responsive to the citizens and their needs.
* It means that you can keep more of the profits that the company generated.
* It means that you have more freedom to decide what is the best policy for your company rather than the government make those choices for you.
* It means that you have greater freedom on deciding who to hire for your company.
Bottom line .... with less government involvement, you have the power to decide how best to run your business.