Every business has six critical elements called Morphemes. Morpheme #1 is the Premise (covered in PhilTakes #16-20). Morpheme #2 is the Promise (PhilTakes #21-25). Morpheme #3 is Sidelines: restrictions or limitations put on the organization by external forces, such as contracts, regulations, taxes, permits, licenses etc.
Business owners and leaders may not like Sidelines, but John Dearie, co-author of Where the Jobs Are: Entrepreneurship and the Soul of the American Economy, reminds us they do serve a purpose if they don’t go too far.
“To be sure, regulation is essential to market economies. It establishes the rules of competition, ensures a level playing field, governs participants’ behavior, and protects consumers, public health and safety, private property, and environmental resources. But regulation is not free, or without consequence. Regulation imposes costs—costs borne principally by businesses.”