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Licensing rules could harm women entrepreneurs

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While intended to protect the safety and well being of the public, occupational licensing can often create unnecessary barriers for women entrepreneurs.

That’s the conclusion of the latest study from the Kansas City-based Women’s Foundation. The report, “Occupational Licensing and Women Entrepreneurs in Missouri,” was conducted in partnership with the University of Missouri Truman School Institute of Public Policy and the Ewing Marion Kauffman Foundation, according to a news release.

Research found the occupational licensing rules could restrict entry and re-entry into professions, reducing employment and creating economic inequity. Nationwide in 2015, employed women were more likely to hold a state certification or license – 28.1 percent – than employed men, at 23.2 percent.

“A person who leaves the profession for maternity leave, long-term caregiving or other reasons must revert her license to in-active status, pay applicable fees on an on going basis and complete all continued training requirements before entering the profession,” the report reads. “People with a certification or license earned about a third more than those without these credentials.”

According to the report, Missouri has 40 occupational licensing boards and commissions that regulate 55 professions. Approximately 133 occupational licensing board or commission members are serving expired terms and more than 38 board seats are currently vacant.

Through the report, the Women’s Foundation offers up potential solutions including:

• provide mentoring to women entrepreneurs;

• encourage community members to apply for board positions;

• standardize all board and commission websites;

• establish periodic review through sunrise and sunset provisions; and

• revise statutes to require certification or registration only for some professions.

“This research shows that there are some unnecessary and outdated regulations that make it harder for women to become entrepreneurs,” said Wendy Doyle, president and CEO of Women’s Foundation, in the release. “We’ll be working toward common sense solutions so that more women are empowered to open businesses.”


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