This month, the Small Business & Entrepreneurship Council (SBE Council) released its twelfth annual rankings of the states according to their public policy climates for small business and entrepreneurship in the Small Business Survival Index 2007. According to SBE Council chief economist Raymond J. Keating, author of the study, "We're in a period of questions and uncertainty when it comes to the economy. It is critical for elected officials in the states to understand that their policies affect the decisions of entrepreneurs, businesses and investors, the bottom lines of small businesses, and the lives of employees. All of this tallies up to a very big deal for a state's economy." SBE Council President & CEO Karen Kerrigan added, "The 'Index' helps political leaders and policymakers understand whether their state truly has an environment that is enabling to entrepreneurship and small business growth. Capital and labor are increasingly seeking more friendly terrain, and if a state is losing business and business investment, the Index can help leaders determine how they stack up -- both generally and in specific policy cost areas." The Index has been expanded again this year, and is perhaps the most comprehensive gauge available of how state and local policymakers treat entrepreneurs and small businesses. Covered are taxes, various regulatory costs, government spending, property rights, health care and energy costs, and much more. The 2007 Index considers 31 major government-imposed or government-related costs affecting small businesses and entrepreneurs. The measures are added together for an overall rating.
Keating explained: "Some elected officials, policymakers and special interests believe that taxes, regulations and other governmental costs can be increased with impunity. Economic reality tells a different story. Ever-mounting burdens placed on entrepreneurs and small businesses by government negatively affect economic opportunity. The Small Business Survival Index tries to make clear the relative governmental burdens placed on entrepreneurship among the states, so that business owners and their employees, elected officials and citizens in general can better grasp the competitive position of their respective states." In terms of their policy environments, the most entrepreneur-friendly states under the Small Business Survival Index 2007 are: - South Dakota
- Nevada
- Wyoming
- Washington
- Florida
- Michigan
- Texas
- South Carolina
- Virginia
- Alabama
- Colorado
- Georgia
- Tennessee
- Indiana, and
- Arizona.
In contrast, the most anti-entrepreneur policy environments are offered by the following: 37) Nebraska, 38) Connecticut, 39) North Carolina, 40) West Virginia, 41) Iowa, 42) Hawaii, 43) Vermont, 44) Massachusetts, 45) Minnesota, 46) New York, 47) Maine, 48) Rhode Island, 49) California, 50) New Jersey and 51) District of Columbia. Keating added: "It must be noted that countless issues play into human decision-making regarding business location and investment. But the impact of public policy often is very important. The relative governmental costs among the states will impact where people live and work, that is, where they seek opportunity. That most certainly is illustrated by where people are moving to and from among the states." For a complete rank listing and more information about the report, visit http://www.sbecouncil.org. (Look for the "Small Business Survival Index 2007" icon on the right side of the website's front page.) |
