Enjoy sinking your teeth into a Subway sandwich, freshly made while you wait? If the same government regulations that choke small businesses, entrepreneurs and franchises had been in place during its inception, that sandwich wouldn't exist, according to an interview with founder Fred Deluca published yesterday, February 27.
"If I started Subway today, Subway would not exist," Deluca told CNBC's "Squawk on the Street" Wednesday.
Deluca cited a number of regulations that are stifling small business growth and entrepreneurship, including the Patient Protection and Affordable Care Act (PPACA), better known by its nickname, Obamacare. Other deterrents to small businesses, franchises and entrepreneurs are the payroll tax, which increased by 2 percent this year and a push for increased minimum wages.
Obamacare is particularly troubling because businesses don't know what to expect, according to CNBC's interview with Deluca. The provisions in the bill are now just coming to light, and many of the provisions place an undue burden on businesses.
But a proposed 25 percent increase in the federal minimum wage also gives Deluca pause. According to the CNBC piece, Deluca believes that a sharp increase will directly impact prices.
Finally, the current economy makes it difficult for small businesses, franchises and entrepreneurs to get loans, Deluca said in the interview. These challenges, all combined, make it difficult to start and grow a business, he said.
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