Small Business Majority highlights negative impact of non-compete agreements on small businesses in response to FTC RFI

On October 8, Small Business Majority submitted a response to the Federal Trade Commission’s request for information (RFI) to better understand the scope, prevalence and effects of employer non-compete agreements. Our response details how non-compete agreements hinder aspiring entrepreneurs from using their skills and experience to start new businesses, while also limiting small businesses’ ability to hire skilled workers. Small Business Majority research found that nearly half of small businesses (46%) report that they were subject to a non-compete agreement that prevented them from starting or expanding their business and 35% have been prevented from hiring an employee due to a non-compete agreement.