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The best state and city for small business are ...
By Caitlin Huston
Published: Aug 18, 2015 3:05 p.m. ET
75 34 29 3
Texas takes the top spot, Rhode Island at bottom of Thumbtack survey
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Thumbtack ranked Texas as the most small-business-friendly state. .
The best state for small business owners is Texas and the worst is Rhode
Island, according to an annual survey revealed Tuesday.
The survey, conducted by technology marketplace Thumbtack, contends that the
friendliest states and towns for small businesses offer easier or non-
existent licensing requirements. On a city basis, the report called
Manchester, N.H., the best and Hartford, Conn., the worst for small-business
climate.
Best Climates for Small Business
States Cities
1. Texas 1. Manchester, N.H.
2. New Hampshire 2. Dallas, Tex.
3. Utah 3. Richmond, Va.
4. Louisiana 4. Austin, Texas
5. Colorado 5. Knoxville, Tenn.
Source: Thumbtack
Thumbtack used survey responses from 17,633 small businesses across the
United States. Most of the businesses were small service businesses with
five or fewer employees.
Startup hotspots California and New York ranked as the fourth and fifth
worst states for small business, according to the survey. That’s because
the climate for small businesses in both states is “very difficult due to
burden of regulations, state government and tax climate,” Thumbtack Chief
Economist Jon Lieber said.
In both states and cities, training that helped small-business owners learn
how to run a business and adhere to policies was most important in
determining whether the location was small-business-friendly.
“These small businesses, because they’re so small, really value direct
support from a city or a state,” Lieber said.
Worst Climates for Small Business
States Cities
1. Rhode Island 1. Hartford, Conn.
2. Illinois 2. Albuquerque, New Mexico
3. Connecticut 3. Buffalo, N.Y.
4. California 4. New Haven, Conn.
5. New York 5. Providence, R.I.
Source: Thumbtack
Tax regulations and labor regulations were also important drivers on a state
basis. For cities, licensing requirements that were either effective or non
-existent and website experience, meaning the city has an easy-to-use
website, were weighted highly.
Whether or not a city or state is viewed as friendly to small businesses is
important for its economic welfare, Lieber said. A friendly city will not
only attract more small businesses, but in the event of an economic downturn
, more of its local workers will be able to make money by starting a small
business.
Less-friendly cities are more dependent on large employers and could suffer
more in an economic downturn, he said.
“That can hurt the city in the long run,” Lieber said. |
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