What Are The Best And Worst States For Small Businesses?

In case you were wondering, yes, there is an ideal place to start your small business. According to a new survey from the Kauffman Foundation and Thumbtack.com, Texas, Idaho, Oklahoma and Utah are the most small business-friendly states.

The poll of more than 6,000 business owners and entrepreneurs revealed that low tax rates, simple licensing regulations and publicized training programs were key to a healthy business environment.

While the highest-ranking states may be great for starting a business, they may not be a great place to start your life, however. According to a separate survey by Chief Executive magazine, top business states like Texas, Louisiana and Oklahoma can't compete with other states like California and New York -- which aren't business friendly -- when it comes to the well-being of residents.

Is your state business-friendly? Check out the slideshow below for the big winners and losers according to the Kauffman/ Thumbtack.com rankings.

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• 1. Idaho

  Idaho earned an A+ for overall small business friendliness, scoring top rankings in all categories other than hiring costs.

• 2. Texas

  Texas earned an A+ ranking and the second-most friendly state for small businesses. Dallas-Fort Worth and San Antonio were ranked among the best cities in the nation to start a business.

• 3. Oklahoma

  Oklahoma earned an A+ for overall friendliness towards small business. Oklahoma City was rated the friendliest city to small businesses in the U.S.

• 4. Utah

  Utah scored an A+ for overall friendliness and was ranked in the top three states for ease of starting a business.

• 5. Louisiana

  Louisiana ranked fifth with an A in overall friendliness. The state scored high on regulations, licensing and networking programs.

• 46. New York

  New York scored a D in overall business friendliness. The empire state scored an F for regulations, tax code and zoning.

• 47. California

  California earned an F for overall friendliness to small business. The state ranked as the fourth worst in zoning, tax code and regulations.

• 48. Hawaii

  The island paradise isn't perfect for small businesses. The islands scored an F for overall friendliness, and scored lowest on ease of starting a business, hiring costs and regulations.

• 49. Vermont

  The snowy state ranked as the second worst state for small businesses, earning an F for overall friendliness and ease of starting a business.

• 50. Rhode Island

  The smallest state isn't the friendliest to small businesses. Rhode Island scored an F for regulations, tax code, zoning and health and safety.

Comments

[Lucas James]

06:40 PM on 03/28/2013

Well, I certainly don't agree with all. But Phoenix, AZ is doing well for small business growth. I recently opened up my personal training business and it's done quite welll. Small business website is www.LucasJamesPersonalTraining.com

[jhnnxn]

12:46 PM on 05/09/2012

How does the study define "well-being"?