RSS feed Get our RSS feed

News by Topic

BizReport : Internet : May 09, 2012

Idaho, Texas among friendliest for SMBs, finds survey

When it comes to starting a new business, forget California and New York. According to a recent survey from Thumbtack and the Ewing Marion Kauffman Foundation SMBs like Texas and Idaho more when it comes to starting a new business. The most business-friendly region (US) according to the survey was the South.

by Kristina Knight

Also among the winners for 'friendliest to SMBs' states were Oklahoma and Utah. Meanwhile SMB owners offered California, Hawaii, Vermont and Rhode Island the lowest scores when it comes to friendliness; New York was also near the bottom. Why are these states near the top - and bottom, respectively? Taxes, for one.

SMBs reported Idaho, Nevada and Delaware as having business-friendly tax codes. Another indicator of how happy businesses were in their respective states was the licensing requirements state to state.

"Six thousand small business owners have told an unusually nuanced story about what they value in their state or city government," said Sander Daniels, co-founder of Thumbtack. "Although Texas and Idaho clearly come out on top as the nation's friendliest states towards small business, entrepreneurs value a lot more than just low tax rates. Easy-to-understand licensing regulations and well-publicized training programs are often overlooked as critical tools necessary to support small business."

Researchers also found the 'friendly' rating correlated with statewide support of small businesses - including programs to help SMBs with training and other issues.

"Asking entrepreneurs to rank state friendliness to their businesses is a powerful resource for helping policymakers understand the needs of business owners and for helping aspiring founders understand the full dimensions of their business environment," said Dane Stangler, director of research at the Kauffman Foundation.

Small businesses also reported state licensing requirements were more important than actual tax rates.

Tags: Ewing Marion Kauffman Foundation, online business, small business trends, SMB trends, Thumbtack

Subscribe to BizReport

  • I wish I had explored moving my small business to Texas. I moved out of California to overseas instead and although it is a much more free environment than in the US, the capricious US tax code makes it very difficult for expats to remain compliant.



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.