Licensed: keeping track of the rise in professional requirements

Posted by Justin Hesser on May 31, 2012

While many analysts and experts believe that taxes are the bane of small businesses, a recent article by Slate stipulates that licenses, rather than taxes, are the biggest thorn in a small business' side.

While many companies may use a custom database software to keep track of their expenses, payroll and taxes, it may behoove them to use these custom application softwares to maintain their licenses and records as a form of backups as these are, according to the news source, not only important but can also be very convoluted and becoming a problem for many businesses.

For example, in Nevada, Louisiana, Florida and Washington D.C., all aspiring interior designers must complete 2,190 hours of training and apprenticeship as well as pass an exam before practicing. Meanwhile, the rest of the country requires no such training to be proved to lawmakers.

Furthermore, while most states don't require any sort of licensing or age requirement for being a locksmith, in Oklahoma locksmiths must be at least 21 years of age, New Jersey requires a high-school diploma and Tennessee makes those yearning to be a locksmith to pass two exams.

In fact, licensing has seen a rise in professional requirements, especially since once a licensing system is in place it becomes easy for those currently licensed to lobby for more restrictions to increase barriers of entry for competition. According to the source, in the early 1950s less than 5 percent of American workers were in positions that required a license, now, that number is "well over 20 percent."

While the red tape of licensing becomes an increasingly popular problem for small businesses, the use of custom database software can help those who need to maintain these records in case they are called upon to prove or show them.