By Renée J. Johnson
Across Missouri, small business owners are no strangers to uncertainty. They have weathered inflation, workforce shortages, and shifting consumer demand. But increasingly, another challenge is shaping their ability to stay open and competitive: the pace and unpredictability of regulation.
This is not an abstract concern. It is showing up in real ways, particularly in industries where rules are evolving quickly and often unevenly.
Take kratom, a substance long used but recently come under scrutiny from lawmakers, as one example. A derivative of kratom, 7-OH, has come under fire in recent months, with some states moving to ban the substance and the federal government looking to schedule it alongside hard, illicit substances. In many ways, the policy discussion surrounding kratom resembles that of hemp products, complete with unclear regulations, fear-mongering rhetoric, and a lack of clarity on what the rules are.
While Missouri has not enacted a full statewide ban, the regulatory environment surrounding kratom and similar products remains inconsistent and uncertain. Some jurisdictions have moved to restrict or prohibit sales, while others allow it under varying conditions. For small retailers, many of whom rely on a narrow set of high-margin products to stay afloat, this patchwork approach creates confusion and risk.
In a rapidly shifting policy environment, business owners are forced to interpret what compliance looks like in real time. When shifts in regulation are driven more by panic than by evidence, the result is a destabilized business environment, leading to closures, layoffs, and more.
Think about this from a business owner’s perspective. Inventory decisions must be made in advance. Products are purchased, stocked, and marketed based on existing rules. When those rules shift quickly or differ across jurisdictions, the financial consequences can be immediate. Unsellable inventory, disrupted supply chains, and lost revenue are legitimate consequences absorbed directly by the business.
Missouri is home to more than 530,000 small businesses, representing 99.4 percent of all businesses in the state. Together, they employ roughly 1.2 million Missourians—nearly half of the private workforce. These businesses are the backbone of local economies, from St. Louis and Kansas City to rural communities across the state.
But they are also the least equipped to absorb rapid change.
Unlike large corporations, small businesses do not have compliance teams or in-house counsel to navigate shifting regulatory frameworks. Owners often manage operations, employees, and finances all at once. When policies evolve without clear guidance or reasonable implementation timelines, the burden falls squarely on their shoulders, with both financial and legal consequences at stake.
Research from the U.S. Small Business Administration has consistently shown that small firms face higher regulatory costs per employee than their larger counterparts. That disparity matters. What may be a manageable adjustment for a large company could be a destabilizing shock for a small business operating on thin margins.
And this is happening at a time when those margins are already under pressure.
According to the National Federation of Independent Business, small business owners continue to cite inflation and the cost of doing business as top concerns. Prices for goods and services remain elevated, while access to capital has tightened in many cases. In this environment, even minor disruptions to a business model can have outsized effects.
When layered with regulatory uncertainty or kneejerk reform, whether around kratom, hemp-derived products, or other emerging categories, the cumulative impact becomes difficult to ignore.
None of this is to suggest that regulation is unnecessary. Public health and consumer safety are critical priorities, especially for products of this nature, and policymakers can and should respond to emerging issues. But how those responses are structured matters just as much as the intent behind them.
For small businesses, predictability is essential. Clear rules, consistent enforcement, and reasonable timelines allow owners to plan, invest, and adapt. Without those elements, regulation can unintentionally create instability, particularly for the very businesses that power local economies.
Missouri has long prided itself on being a place where entrepreneurs can start and grow businesses. Preserving that environment requires a regulatory approach that recognizes the realities small business owners face every day.
Because, for the retailer trying to decide what to stock, the entrepreneur weighing whether to expand, or the family-owned business working to stay open, the question is not whether they support responsible policy, but whether they can keep up with how quickly it is changing.
And increasingly, that is the question that will define the future of small businesses across Missouri.
