Small Business Owners Want Training, Simplified Regulatory Compliance from Government

aug obstacleIs your state considered ‘friendly’ to small business? Entrepreneurs in Texas, Utah and New Hampshire gave high marks to their states – while California, Illinois and Rhode Island scored lowest.

As policymakers look for every angle to promote entrepreneurial growth in their communities, the latest Small Business Friendliness Survey provides some useful insights.

“Small business owners on Thumbtack have consistently told us that they welcome support from their government but are frequently frustrated by unnecessary bureaucratic obstacles,” said Jon Lieber, chief economist of “Given that there is a crisis of entrepreneurship in the United States, seen in the broad collapse of self-employment across industries and states, creating the right environment for business startups is more important than ever.”

According to the author, promoting local business training and focusing on simplifying regulatory compliance are two major factors – while taxes aren’t as important. In fact, the analysis shows labor rules were 88 percent more important in driving state friendliness scores when compared to tax rates.

While Texas, Utah and Rhode Island scored highly across the board, the lowest score for each was the ease of hiring – how simple it is for business owners to hire new employees. Surprisingly, that same criteria was rated highest for California, Illinois and states at the bottom of the list.

Small businesses in Manchester, Dallas, Richmond, Austin, and Knoxville gave their cities the highest ratings. Providence, New Haven, Buffalo, Albuquerque, and Hartford were the survey's worst­-performing cities as rated by their small business owners.

Photo Credit: Flickr


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