NCPA - National Center for Policy Analysis

South Dakota Friendliest To Small Businesses -- But Avoid D.C.

December 6, 2000

Each year, the Small Business Survival Committee rates how friendly each state is to entrepreneurs. The index applies 16 criteria to each state and then pulls the results together into one final score.

Here are some results from the SBSC's 2000 Index:

  • The dozen most friendly states begin with South Dakota, followed by Nevada, Wyoming, New Hampshire, Texas, Florida, Washington, Alabama, Michigan, Mississippi, Tennessee and Alaska.
  • The least hospitable begin with New York at number 40, then proceed to North Carolina, Maine, New Jersey, Oregon, Montana, Ohio, Minnesota, New Mexico, Rhode Island, Hawaii -- and, at 51, Washington, D.C.

While some states have been implementing tiny income tax cuts that may improve their standing, the move for deep, across-the-board tax relief has been all but non-existent, says the committee. This despite hefty revenues in states and localities across the nation.

Source: Raymond J. Keating (Small Business Survival Committee), "The Statist States: Small Business Is Too Often Ignored by Pols Nationwide," Investor's Business Daily, December 6, 2000.


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