Don’t let health care mandates impede Ohio’s business-friendly environment: Bartholomew Shepkong

COLUMBUS, Ohio — Starting a small business in Ohio has been one of the most rewarding things I’ve ever done, and the lessons I’ve learned along the way have been invaluable. Many of my neighbors are surprised to learn that small businesses truly drive our economy and communities. In fact, the most recent numbers from the U.S. Small Business Administration found that there are 989,435 small businesses in Ohio – employing more than 2.2 million people and comprising 99.6% of all businesses in the state.

My path as a business owner has also led me to the good fortune of helping incredible people from all across the state take steps toward achieving their entrepreneurial dreams. By closely working with Ohioans, especially members of the African community, I’m encouraged and motivated by their strong desire to launch businesses that meet the needs of their communities, while improving the quality of life for all of us.

Unfortunately, the success of small businesses in Ohio is too often hampered by well-intended regulations and government intervention that lead to rising costs for business owners. As just one example, special interests in the state are pushing for further reform of pharmacy benefit managers (PBMs) by attempting to dictate how businesses can contract with their PBM and pay them for their services. As a business owner, I know that anything that restricts the choices I have and makes decisions on my behalf is bad for me because the unique needs I have are far different than the needs of my fellow businesspeople.

A parlor game at any networking event among small business owners has long been to discuss the roadblocks and hoops through which we must jump to turn a business plan into reality. The permits, delays, and licensing can sometimes be overwhelming for everyday entrepreneurs. Yet, giving credit where it’s due, the state has made progress addressing some tax and regulatory policies to encourage more businesses in the state. The most recent CNBC America’s Top States for Business 2024 rankings saw Ohio jump from No. 12 in 2023 to No. 7 this year.

But what’s even more concerning for me, and many business owners in the state, are the ongoing costs of running a business that are sometimes difficult to project. Health care costs continue to rise at the same time more prospective employees are looking for comprehensive health and wellness offerings when evaluating job opportunities. For example, a recent survey from KFF found that annual premiums for employer-sponsored family health coverage reached $25,572 in 2024, 7% higher than the previous year – and 24% higher than 2019. Much of that is being driven by skyrocketing prescription drug costs.

This impacts all companies, but especially minority-owned small businesses that are closely watching our spending. Competing with larger businesses is all that much more challenging when health care costs increase, an added expense that larger companies can more easily absorb.

Certainly, some of what we’re seeing in Ohio reflects national trends, but lawmakers in the state risk making it worse for businesses and backtracking on the progress we’ve made by considering policies that would further increase costs and restrict employer choice. Ideas to further intervene in the health care system, combined with existing coverage mandates and rising costs, will only drive more entrepreneurs out of business or out of the state.

Small businesses benefit all of us – and the dream of entrepreneurship is something that so many Ohioans work their entire lives to achieve. Fortunately, we are resilient, collaborative, and stand ready to help lawmakers find solutions that ensure we stay prosperous and in Ohio.

Bartholomew Shepkong co-founded “The African” nonprofit “to educate, support, and advocate” for the well-being of central Ohio’s African diaspora. He holds a Ph.D. in public policy and social change and is an interdisciplinary studies scholar whose research, teaching, and leadership are invested in the ways in which people navigate social systems, political landscapes, and economies that limit their access.

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