Economics

Perceptions of Friendliness in the Regulatory Environment and its Correlation to Small Business, CEO’s, and Indicators of The Economy

Perceptions of friendliness in the regulatory environment of small businesses offer important insights to the predictability of future outcomes. The data compiled for this paper will be analyzed in the form of two separate regression analyses. The first model identifies correlation between the dependent variable of friendliness and the independent variables of race, along with insight from CEO’s. The second analysis goes further to identify the same correlation but with additional independent variables regarding people who think the economy is in bad shape as opposed to people who think the economy is in good shape.

The first analysis suggests that there is somewhat of a strong correlation between friendliness and race with the exception of Asian business owners. The data shown below indicates lower T-statistic and coefficient values for Asian business owners as opposed to the other races. This analysis is difficult to explain because one cannot specifically explain why Asian business owners are less friendly than Hispanics and Blacks without offering biased opinions. My perspective is that race does not matter and everyone has the opportunity to be a good leader. It is up to the individual to develop the skills, knowledge and abilities to be successful which in turn results in being more successful, thus- friendlier.

When the additional independent variable of CEO perception is added to the regression, a negative correlation becomes evident in the analysis. As shown below, CEO’s appear to be less friendly. This can be explained because of the criticisms that CEO’s receive in the media regarding being overpaid, issues of outsourcing, and evading taxes legally within the system. In my opinion, CEO’s get a bad wrap for being everything listed above. However, I feel that CEO’s have a plethora of responsibility and are held...