SBE Council Report – The 50 States Ranked for Entrepreneurs 2013

The Small Business & Entrepreneurship Council (SBE Council) released its 18th annual “Small Business Policy Index 2013: Ranking the States on Policy Measures and Costs Impacting Small Business and Entrepreneurship.”

SBE Council has published the state Index for 18 years, which ranks the 50 states according to 47 different policy measurements, including a wide array of tax, regulatory and government spending measures.

The states that have the most entrepreneur-friendly policies under the “Small Business Policy Index 2013” are:
1) South Dakota
2) Nevada
3) Texas
4) Wyoming
5) Florida
6) Washington
7) Alabama
8) Indiana
9) Ohio
10) Utah
11) Michigan
12) North Dakota
13) Arizona
14) Colorado
15) Virginia

In contrast, the states with the least friendly policy environments for small businesses are:
40) Rhode Island
41) Connecticut
42) Oregon
43) Iowa
44) Maine
45) Minnesota
46) Hawaii
47) New York
48) Vermont
49) New Jersey
50) California

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SBE Council president and CEO Karen Kerrigan said: “Policy reforms that bolster small business startup and growth are mostly being implemented at the state level. Unfortunately, federal policy and uncertainty remains an overall negative for entrepreneurs and small businesses. But states vary widely in terms of their policy approaches. The top states on the Small Business Policy Index 2013 are streamlining government and lifting burdens like excessive taxation and regulation. They are passing responsible budgets, and living within their means. The worst ranked states keep treating small businesses and entrepreneurs as piggy banks to fund higher spending and bankrupt programs.”

Kerrigan added: “Governors and state leaders who are serious about improving their entrepreneurial ecosystems are aggressively working to change policies that are harming entrepreneurship and business growth. The White House needs to closely examine what the most successful states are doing to help entrepreneurs. These pro-growth policies, if enacted at the federal level, would make a major difference for U.S. economic growth and competitiveness.”

Raymond J. Keating, SBE Council’s chief economist and author of the study, pointed out, “This study is straightforward and well documented. The Small Business Policy Index 2013 is built on sound, clear-cut economics, as understood in Economics 101 and evidenced by the many studies cited in the Index. Quite simply, the states are compared and ranked according to how state and local government policies impact costs and incentives for entrepreneurship and investment. In turn, such risk taking is critical to economic growth, income growth and job creation.”

Keating added, “Small business owners and business leaders need to look at the details for their respective states. The Small Business Policy Index 2013 is a valuable tool to let policymakers know where improvements are needed, so that entrepreneurs can do what they do best, that is, start up and build businesses, innovate, grow the state’s economy, and create jobs.”

SBE Council is a nonpartisan, nonprofit advocacy, research and education group that works to protect small business and promote entrepreneurship.

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SOURCE: Small Business & Entrepreneurship Council