Small Business Survival Index 2009

The Small Business and Entrepreneurship Council, a nonprofit, nonpartisan small business advocacy group that works to promote entrepreneurship, has released its Small Business Survival Index 2009, which ranks each of the 50 states according to their "climate for Entrepreneurship." This is the 14th consecutive year the Council has done such a study.

According to the Council chief and author of the study, Raymond J. Keating, "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.”

So why does this matter? According to Keating, politicians often talk a good game when it comes to small businesses but don't follow up with action. The Small Business Survival Index shows what costs and trends affect 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," he said in a press release.

The Small Business Survival Index basically shows which states are most friendly to small business in regard to public policy. This includes taxes, regulatory costs, government spending, health care, property rights, and energy cost among other things. In 2009, the study covered 36 major government-related costs that affect small businesses. South Dakota and Nevada came in at the top, while New Jersey and Washington D.C. rounded out the bottom.

Here is the list in its entirety:

1. South Dakota
2. Nevada
3. Texas
4. Wyoming
5. Washington
6. Florida
7. South Carolina
8. Colorado
9. Alabama
10. Virginia
11. Ohio
12. Alaska
13. Tennessee
14. Utah
15. Indiana
16. Arizona
17. North Dakota
18. Missouri
19. Mississippi
20. Georgia
21. Oklahoma
22. Kentucky
23. Michigan
24. Illinois
25. Arkansas
26. Kansas
27. Pennsylvania
28. New Mexico
29. Louisiana
30. Wisconsin
31. Montana
32. Idaho
33. New Hampshire
34. Nebraska
35. Delaware
36. West Virginia
37. Maryland
38. Oregon
39. North Carolina
40. Connecticut
41. Iowa
42. Hawaii
43. Minnesota
44. Massachusetts
45. Rhode Island
46. Maine
47. Vermont
48. New York
49. California
50. New Jersey
51. Washington D. C.

You can view the entire report here: Small Business Survival Index 2009

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