Small Business Survival Index 2003 Ranks the States According to How Friendly Their Policies Are For Entrepreneurship

The Small Business Survival Committee (SBSC) released its annual rankings of the states according to their respective policy climates for small business and entrepreneurship in the `Small Business Survival Index 2003.`

According to SBSC chief economist Raymond J. Keating, author of the study, `The `Small Business Survival Index 2003` compares how governments in the states treat small businesses and entrepreneurs. Since small business serves as the backbone of the U.S. economy—for example, by providing the bulk of new jobs and being a font of innovation—every state and local lawmaker should be concerned with how their policies impact small business.`

SBSC president Darrell McKigney noted: `The purpose of the `Small Business Survival Index 2003` is to let business owners, citizens and lawmakers know how they stack up with the rest of the country in terms of how friendly government policies are toward small businesses and economic growth.`

The `Small Business Survival Index 2003` ties together 21 major government-imposed or government-related costs affecting small businesses and entrepreneurs across a broad spectrum of industries and types of businesses — personal income taxes; capital gains taxes; corporate income taxes; individual alternative minimum taxes; corporate alternative minimum taxes; indexing of personal income tax rates; property taxes; sales, gross receipts and excise taxes; death taxes; unemployment taxes; health care costs; electricity costs; workers` compensation costs; crime rates; right-to-work status; number of bureaucrats; tax limitation status; Internet taxes; gas taxes; state minimum wages; and state legal liability costs. These measures are combined into one index number—the Small Business Survival Index.

Keating notes: `The Small Business Survival Index manages to capture much of the governmental burdens impacting critical economic decisions—particularly affecting investment and entrepreneurship—state by state. Starting up, owning and operating a business is a risky venture. But those individuals willing to take such risks, by making investments of resources, time and energy, spur the economy forward. Indeed, entrepreneurship and investment serve as the economy`s lifeblood. Of course, most politicians claim to support small business, but their actions speak far louder than any political speeches ever could.`

In terms of their policy environments, the most entrepreneur-friendly states under the `Small Business Survival Index 2003` are: 1) South Dakota, 2) Nevada, 3) Wyoming, 4) New Hampshire, 5) Florida, 6) Texas, 7) Tennessee, 8) Washington, 9) Michigan, 10) Mississippi, 11) Alabama, 12) Colorado, 13) Illinois, 14) Virginia, and 15) Indiana. In contrast, the most anti-entrepreneur policy environments are offered by the following: 37) North Carolina, 38) Montana, 39) Ohio, 40) West Virginia, 41) Iowa, 42) Oregon, 43) New Mexico, 44) Vermont, 45) New York, 46) California, 47) Rhode Island, 48) Maine, 49) Minnesota, 50) Hawaii, and 51) District of Columbia.

Keating concludes: `The best policy environment for entrepreneurship consists of low taxes, limited government, restrained regulation, and government protecting life, limb and property. States following such a governing philosophy will reap great rewards from America`s entrepreneurs, including faster economic growth and increased job creation.`

Following are the complete state rankings for the `Small Business Survival Index 2003`:

Small Business Survival Index 2003: State Rankings
Rank State SBSI Score
1 South Dakota 22.990
2 Nevada 24.852
3 Wyoming 29.130
4 New Hampshire 30.646
5 Florida 31.662
6 Texas 31.690
7 Tennessee 33.044
8 Washington 33.210
9 Michigan 35.332
10 Mississippi 36.678
11 Alabama 36.755
12 Colorado 37.650
13 Illinois 38.537
14 Virginia 39.490
15 Indiana 39.613
16 South Carolina 39.828
17 Pennsylvania 40.129
18 Arizona 41.268
19 Missouri 41.576
20 Delaware 41.650
21 Louisiana 42.130
22 Alaska 42.180
23 Georgia 42.407
24 Maryland 42.575
25 Arkansas 43.002
26 Utah 44.265
27 Oklahoma 44.440
28 Kentucky 44.864
29 Idaho 44.920
30 Massachusetts 45.785
31 Wisconsin 46.445
32 Kansas 46.810
33 North Dakota 47.665
34 Nebraska 47.725
35 Connecticut 48.181
36 New Jersey 49.095
37 North Carolina 49.175
38 Montana 50.338
39 Ohio 50.610
40 West Virginia 51.414
41 Iowa 52.063
42 Oregon 52.090
43 New Mexico 52.150
44 Vermont 52.950
45 New York 53.422
46 California 54.364
47 Rhode Island 55.220
48 Maine 55.561
49 Minnesota 55.670
50 Hawaii 57.603
51 Dist. of Columbia 61.005

For a copy of the `Small Business Survival Index 2003,` visit SBSC`s website at http://www.sbsc.org. SBSC is a national nonpartisan, nonprofit small business advocacy group headquartered in Washington, D.C.