The city of Chicago unveiled an initiative to cut red tape to make it easier and faster to open and run small businesses, at a time when many local owners face a litany of challenges.
“As my administration continues our work to modernize and enhance the responsiveness of city government, Cut The Tape for Small Business sets a clear direction for how we will engage, serve and partner with entrepreneurs now and into the future,” Mayor Brandon Johnson said in a news release last week.
The announcement, on Small Business Saturday, came more than a year after the Chicago-based Small Business Advocacy Council pressed for reforms to the city’s bureaucratic rules and procedures that often stymie businesses. The advocacy group’s proposal was endorsed by more than 30 chambers of commerce, business organizations and at least 15 alderpersons.
Small Business Advocacy Council President Elliot Richardson said he appreciates that Johnson is focusing on cutting red tape.
“However, small businesses have waited far too long for real action. Every Chicago politician should champion and prioritize process improvements so small businesses can open, operate and grow without facing costly, burdensome and time-consuming red tape,” Richardson said. “They should act now and make meaningful, common-sense reforms that will support the small businesses that support local communities.”
The city outlined a number of goals to cut bureaucracy, create transparency and give more access to small-business education and resources. They included digitizing licensing and permitting processes; developing guidance on prelicensing inspections; streamlining the debt check process; creating an online zoning map to show business activities allowed at specific locations; and breaking down information silos between city departments.
The announcement also included broader plans for support, including launching digital literacy initiatives targeting entrepreneurs with insufficient resources; working with City Colleges of Chicago to offer education programs for entrepreneurs; using storytelling to promote neighborhood tourism; and exploring new regulation for emerging industries.
The initiative follows the city’s plan, unveiled in spring 2024, to cut red tape related to residential and commercial development.
One example of red tape for small businesses that the Small Business Advocacy Council highlighted last year was the onerous zoning process. It also asked the city to improve communication by explaining license denials in writing.
The city’s red tape-cutting initiative comes at a time when many small businesses in Chicago are struggling with higher costs due to inflation, tariffs, labor and health care. Weaker consumer demand and aggressive raids by U.S. Immigration and Customs Enforcement agents this fall also hurt many of them.
Last month, nearly 20 businesses attended a roundtable discussion with U.S. Rep. Mike Quigley, D-Ill., at beauty store Mojo Spa in Wicker Park to discuss their challenges. They included Volumes Bookcafe, Taxim Greek Restaurant, Oro Chocolate, Wicker Park Inn and others.
“Anything that streamlines operations and reduces bureaucracy is a win for small businesses and encourages entrepreneurship,” Mojo Spa owner Amanda Kezios said.
“The biggest impact will be for new businesses trying to secure permits and licensing, especially in highly regulated sectors where delays can stall openings. Faster, clearer guidance helps owners get up and running more quickly and keeps Chicago’s small-business ecosystem competitive,” she said.
The city’s Department of Business Affairs and Consumer Protection is spearheading the initiative.
Kezios has attended the department’s roundtables, where business owners give feedback and share their challenges.
Kezios said, “I’ve attended two of them this past year, and many of the issues raised there are addressed in this new initiative, which shows the city is listening to its small-business community.”