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The age of small business – Wyoming rated highly (3rd) for its small business climate. Montana ranks 38th.
If the observations of two watchdog organizations are accurate, this is the dawning of the Age of Small Business in Wyoming.
Recently released surveys have the Cowboy State rated highly for its small business climate. The Small Business and Entrepreneurship Council (SBEC) concluded Wyoming is third among the 50 states in its "Small Business Survival Index 2004." http://www.sbecouncil.org/Media/pdf/SBSI_2004.pdf
By WILLY ZIMMER
Star-Tribune staff writer
The SBEC, which was formerly known as the Small Business Survival Committee, determined Wyoming’s business survival climate is enhanced by no personal income, capital gains and corporate income taxes; no added death taxes; low health care and electricity costs; low gas taxes and no sales tax on Internet access.
Another study by the Tax Foundation rates Wyoming seventh for its business-friendly tax environment. The document, which is titled "State Tax Business Climate Index," looked for tax codes that are "neutral, have low and flat rates, are simple and transparent, avoid double taxation, and have statutory or constitutional restraints that keep tax burdens low over time."
"Nearly all of the best states raise sufficient revenue without imposing at least one of three major state taxes — sales taxes, personal income taxes and corporate income taxes," said Tax Foundation President Scott Hodge.
Only four states — Alaska, South Dakota, Washington and Wyoming — have one of three.
Wyoming’s largest cities have also been judged superior places to do business. A poll released by Forbes magazine in May ranked Cheyenne and Casper 18th and 25th, respectively, among 168 small American cites for business climate.
Wyoming Senator Mike Enzi has been an active proponent of small business during his Senate tenure. Enzi’s spokesperson Coy Knobel said the recognition is encouraging.
"These surveys show that Wyoming is ranked favorably. That’s good news," said Knobel, "but Senator Enzi is even more impressed by what he sees when he is home in Wyoming. He is fortunate enough to get a close-up look at the successful work of so many Wyoming residents. The achievement of our state is an example to the rest of the nation that small businesses, more than corporations push the economy."
A Casper small businessperson is helping set that example. Cheryl Payton runs Dragonfly Beads, a crafts supplier, in the Market Square Plaza. Payton, who was once self-employed as a paralegal in California, agreed the state has a favorable tax climate.
But she was also quick to credit the small business support network that exists in Wyoming for enabling her enterprise. Dragonfly Beads opened for business in April, and has been doing very well. Payton said her store has been a hit with local crafters, partly because she created a strong business plan with the help of Wyoming Small Business Development Center (WSBDC) and the Wyoming Women’s Business Center.
"I thought I would be able to at least find a customer base to stay in business, but I’ve exceeded expectations," Payton said. "It turns out there’s a lot more beaders in Casper than people realize. … The business plan was right on. I’ve either doubled or tripled what I expected to do."
The WSBDC, which will celebrate its 10th anniversary Oct. 28 with a reception at the University of Wyoming Union, is part of a network of support organizations for small business. Associate State Director Debbie Popp cited the Wyoming Business Council, Small Business Innovative Research, Research Product Center and Gro-Biz as some of the WSBDC’s partners.
"One of the things I think works very well is the partnerships that we have in the state. … All these organizations are economic development organizations, but we don’t duplicate services," Popp said. "What we do is collaborate, so when we have a client come in, we make sure whatever their needs are. And if a particular organization cannot provide that, they are really good at referring their client to the organization that can. I just returned from our organizations national meeting and talked to other people, and I don’t see that local teamwork happening in other states."
"We choose to work together and it does work well."
Keeping the ball rolling
The favorable tax climate in Wyoming, of course, is largely the result of the huge revenues the state collects from the mineral industry. Looking ahead to the inevitable day when those revenues decline, the 2003 Legislature appropriated more than $5 million to help build a technology-oriented business incubator at the University of Wyoming.
According to the release announcing the project, "Incubation programs have been shown to diversify economies, commercialize technologies, create jobs and build wealth."
A federal grant and a $1.6 million donation from Casper philanthropists Mick and Susie McMurry helped ensure the center will break ground in the spring.
The McMurrys said in a statement, "Wyoming needs to break the cycle of natural resources providing the income on which the Wyoming economy depends."
Building small business as an alternative to Wyoming’s reliance on mineral revenues is but one of the future challenges. Knobel said Enzi is trying to help small business with a bill that would allow the self-employed to deduct health care costs.
Popp acknowledged transportation is an issue for small businesses trying to get products in and out of the state. Making the new venture capital fund more accessible would also help.
"Many states have venture capital funds. … We have one in place that is about a year old, but we really don’t have a ready service for companies that need small amounts of seed capital in the $100,000 to $300,000 range," she said.
But the network to meet those challenges is in place, ensuring there has never been a better time to do business in Wyoming.
"If it’s done right and you find the right kind of angle to come at, a lot of people would be very successful doing business here," said Payton. "But I don’t see as many new business as I’d like to some times. I think people don’t think they can do it, or they don’t know how.
"But there’s great resources. You just have to have a little bit of gumption and jump in there and do it."
Assistant features editor Willy Zimmer can be reached at (307) 266-0524 or [email protected].
On the Net:
Small Business and Entrepreneurship Council: http://www.sbecouncil.org
Tax Foundation: http://www.taxfoundation.org
Wyoming Small Business Development Center: http://www.uwyo.edu/sbdc
Wyoming Women’s Business Center: http://www.wyomingwomen.org
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