SBE Council chief economist Raymond J. Keating, author of the study, said: "It's hard to find any good news at the national level for entrepreneurs, small business and their employees. The U.S. economy slipped into a recession in December 2007, with matters getting far worse late last year. Congress and the White House have not offered positive solutions to help the job-creating sector. In fact, most of their actions will hurt, not help, small businesses. But what about the states? The 'Small Business Survival Index' helps business owners and investors understand the public policy burdens placed on entrepreneurship and small business, with the states ranked accordingly."
Keating continued: "Policy matters. Most politicians talk a good game when it comes to small business, but their actions don't often match their rhetoric. The 'Small Business Survival Index' gets at the public policy costs and trends that affect - directly or indirectly - entrepreneurship and small businesses. These measures should matter to everyone because small businesses, of course, drive innovation, economic growth and job creation. If we want to get our economy back on a solid, robust growth track, then we need pro-entrepreneur policies at the federal, state and local levels."
The "Small Business Survival Index" is the most comprehensive measure of which states are truly friendly to small business, and which are not in terms of public policy decisions. The factors included in the Index - taxes, various regulatory costs, government spending, property rights, health care and energy costs, and much more - matter a great deal to the competitiveness of each state and to the well being of small business.
The 2009 Index has been expanded to cover 36 major government-imposed or government-related costs affecting small businesses and entrepreneurs.
In terms of their policy environments, the Top-Ten entrepreneur-friendly states under the "Small Business Survival Index 2009" are: 1) South Dakota, 2) Nevada, 3) Texas, 4) Wyoming, 5) Washington, 6) Florida, 7) South Carolina, 8) Colorado, 9) Alabama, and 10) Virginia. In contrast, the Bottom-Ten include: 42) Hawaii, 43) Minnesota, 44) Massachusetts, 45) Rhode Island, 46) Maine, 47) Vermont, 48) New York, 49) California, 50) New Jersey and 51) District of Columbia. Complete rankings are found below.
For a copy of the "Small Business Survival Index 2009” with the full rankings click here.