Abstract

An integral part of American folklore is the belief that any American has the right to compete in any business area he chooses. Facts of the situation are quite different. In major sectors of the economy, individuals and firms are unable to gain entry because of legal restrictions. Most capable young people know quite well that they are being prevented from entering economic areas where they feel they might have an interest or even exceptional competence. Hence many cynically elect to work as hired administrators, managers, or organization men. The reason for such choices may lie not so much in the younger adventurers as in the society in which they find themselves. From the school, the home, the pulpit and the peer group everyone preaches the value of free enterprise in theory, while restricting it in practice. Still worse, the restrictions tend to apply most sharply in areas most likely to be entered by small businessman or professional. The purpose of the article is to explore some of the restrictive techniques applied in California to determine if these restrictions are relevant in influencing types of competition allowed.