SBE Council Ranks the States for Policy Friendliness in “U.S. Business Policy Index 2012”
By SBE Council at 13 December, 2012, 11:19 am
Contact: Raymond J. Keating
631-909-1122 or 703-242-5840 Email: rkeating@sbecouncil.org
Washington, D.C. – Today, the Small Business & Entrepreneurship Council (SBE Council) released its “U.S. Business Policy Index 2012: Ranking the States on Policy Measures and Costs Impacting Small Business and Entrepreneurship.”
The Index, now in its 17th year, ranks the 50 states according to 46 different policy measures, including a wide array of tax, regulatory and government spending measures. (Visit the interactive map of the Index, which highlights the key positives and negatives for each state – as well as the ranking – on SBE Council’s website here.)
The most entrepreneur-friendly states under the “U.S. Business Policy Index 2012” are: 1) South Dakota, 2) Nevada, 3) Texas, 4) Wyoming, 5) Florida, 6) Washington, 7) Alabama, 8) Utah, 9) Colorado, 10) Arizona, 11) Michigan, 12) Virginia, 13) Indiana, 14) South Carolina, and 15) Mississippi.
In contrast, the states with the least favorable policy environments include: 37) North Carolina, 38) Massachusetts, 39) Nebraska, 40) Minnesota, 41) Rhode Island, 42) Connecticut, 43) Oregon, 44) Iowa, 45) Hawaii, 46) Maine, 47) New York, 48) Vermont, 49) New Jersey, and 50) California.
SBE Council president and CEO Karen Kerrigan noted: “With all of the focus on federal policy in recent times, it is important to remember that policies at the state level have a major effect on entrepreneurs and businesses for better or for worse. Many governors understand that a friendly policy environment is critical to attracting investment and business, and they are working to improve key policies that will help drive job growth, entrepreneurship and economic opportunity. Small businesses are benefitting from policy competition between the states, and it is encouraging to see leadership on key issues such as fiscal reform, sensible spending, and tax and regulatory relief. The difference in policy costs from state to state can be quite striking, and that matters for entrepreneurship and for a state’s economy.”
Raymond J. Keating, SBE Council’s chief economist and author of the study, pointed out, “Quite simply, policy decisions matter when it comes to making business and investment decisions. Entrepreneurs and investors understand this fact of economic life. But it’s hit or miss with elected officials. As illustrated by this index, some get it, and some clearly do not.”
The “U.S. Business Policy Index 2012” (formerly the “Small Business Survival Index”) can be read and downloaded on SBE Council’s website here. For an interactive online U.S. map summary, please click here.
U.S. Business Policy Index 2012: Policy Ranking (from most favorable to least favorable)
Rank State
1 South Dakota
2 Nevada
3 Texas
4 Wyoming
5 Florida
6 Washington
7 Alabama
8 Utah
9 Colorado
10 Arizona
11 Michigan
12 Virginia
13 Indiana
14 South Carolina
15 Mississippi
16 North Dakota
17 Tennessee
18 Ohio
19 Alaska
20 New Hampshire
21 Georgia
22 Missouri
23 Oklahoma
24 Pennsylvania
25 Louisiana
26 New Mexico
27 Wisconsin
28 Kansas
29 Kentucky
30 West Virginia
31 Idaho
32 Montana
33 Delaware
34 Arkansas
35 Illinois
36 Maryland
37 North Carolina
38 Massachusetts
39 Nebraska
40 Minnesota
41 Rhode Island
42 Connecticut
43 Oregon
44 Iowa
45 Hawaii
46 Maine
47 New York
48 Vermont
49 New Jersey
50 California
SBE Council is a nonpartisan, nonprofit advocacy, research and education organization that works to protect small business and promote entrepreneurship. For more information, please visit: www.sbecouncil.org.
# # #