Business-Friendly Doesn’t Mean No Rules: Smart Regulation for Small Towns

Balancing economic growth with the preservation of community character is one of the toughest challenges facing small-town administrators in Oregon. The conversation often gets stuck between two extremes: “no regulation” for growth, or “over-regulation” for protection. But the reality is, small towns don’t have to choose one or the other. Smart, targeted regulation can foster business development and safeguard what makes your town special.

The False Choice: No Regulation vs. Over-Regulation

It’s a common misconception that being “business-friendly” means stripping away all rules, or that strong communities require heavy-handed oversight. In truth, successful small towns find a middle ground-using regulations as tools to shape growth, not stifle it. Overly restrictive rules can deter investment and innovation, while a lack of standards can erode the very character that attracts residents and visitors in the first place. The key is to move beyond the false dichotomy and focus on smarter, not more regulation.

Identifying Unnecessary Barriers to Business

Start by looking for regulations that create hurdles without clear community benefits. For example, many towns have outdated parking minimums that make it harder to fill vacant storefronts or launch new restaurants. Small towns across the country have found that removing or relaxing these requirements can speed up redevelopment and lower costs for entrepreneurs, with no negative impact on community life. Ask local business owners about their biggest regulatory pain points-often, they’ll point to rules that are ripe for review.

Simple Frameworks for Smarter Regulation

You don’t need a consultant or a big budget to start evaluating your local code. Here’s a straightforward framework adapted from successful reform efforts:

• Does the regulation clearly protect public health, safety, or community character?

• Is the cost (to the town and to businesses) justified by the benefit?

• Is the rule simple, fair, and enforceable with current resources?

• Does it duplicate state or federal requirements without adding local value?
  

If a regulation fails these tests, it’s a candidate for streamlining or elimination. Focus first on those rules that affect the greatest number of businesses and most significantly hinder job creation.

Streamlining Permitting Without Sacrificing Oversight

Permitting delays are a top complaint in small towns, especially where staff and budgets are stretched thin. Streamlining doesn’t mean skipping critical reviews-it means making the process clearer and faster. Consider these practical steps:

• Create a one-stop permitting desk where applicants can get answers and submit all paperwork in one place.

• Standardize application forms and checklists to reduce confusion.

• Set clear timelines for each step and communicate them publicly.

• Digitize forms and tracking (even a simple shared spreadsheet can help).

• Prioritize projects in designated growth areas, like downtown, for expedited review.

Some towns have found success by removing unnecessary steps, such as duplicative reviews or requirements that don’t fit local needs. Others have used incentives-like reduced fees or faster processing-for projects that align with community goals.

Measuring and Communicating Impact

Regulatory reform is as much about trust as it is about rules. To build support, measure the impact of changes and share results with both business owners and community advocates:

• Track permit turnaround times and business openings before and after reforms.

• Survey applicants and residents about their experiences.

• Share success stories-for example, a local café that opened faster thanks to streamlined processes.

• Be transparent about what’s changing and why, emphasizing how reforms protect both economic opportunity and community character.

This approach helps address concerns from preservation advocates while demonstrating real progress to the business community.

Practical Tips for Political Realities

• Engage stakeholders early. Involve business owners, residents, and council members in reviewing regulations and proposing changes.

• Start small. Pilot reforms in one area (like parking or signage) before tackling the whole code.

• Use carrots, not just sticks. Pair regulatory changes with incentives, education, or recognition programs for businesses that go above and beyond.

• Leverage outside resources. Look for state or federal grants to support digital permitting or code updates.

• Be flexible and open to feedback. Regulatory reform is an ongoing process, not a one-time fix.
  

Conclusion: Take the Next Step

Creating a business-friendly environment doesn’t mean abandoning the rules that make your town unique. With a thoughtful, practical approach, you can streamline regulation, support local businesses, and protect community character-all within your existing resources. If you’re ready for a deeper dive or need help crafting a comprehensive policy, consider reaching out for professional support. HSC specializes in helping small Oregon towns like yours find the right balance for lasting success.