Ending Soon! Save 33% on All Access

Rating the Best -- and Worst -- States to Do Business Find out how your state and county compare to the rest of U.S.

By Mikal E. Belicove

Opinions expressed by Entrepreneur contributors are their own.

Rating the Best and Worst States to Do Business

How business friendly is the place you've set up shop? A new report rates the business climate of states and counties across the U.S., based on a survey of business owners.

The report, from 2012 Thumbtack.com Small Business Survey, presented in partnership with the Kauffman Foundation, offers a roadmap -- quite literally -- of the friendliest places to conduct business in the U.S., on a website that enables visitors to check the business climate "score" of any county in any state.

For instance, Idaho, Texas, Oklahoma and Utah all earned A+ scores in rankings for states most friendly to small businesses. On the bottom end of the report card are California, Hawaii, Vermont and Rhode Island. Each received failing grades.

The survey asked about tax rates, simplified licensing regulations, zoning laws, environmental constraints, and established training and networking programs.

Having recently attended a conference in Greenville, S.C., I was most interested to see how the northern area of the Palmetto State fared. I'd witnessed first-hand how this TechStars/Global Accelerator Network-city caters to start-ups and small businesses.

I wasn't surprised to see "Upstate" South Carolina receive a B+. Entrepreneurs and start-ups in Greenville aren't only aware of locally inspired training programs for small businesses, but many take advantage of them.

The scene was a far cry from the business atmosphere here in my adopted state of California. Sure, I look out my living-room window and see the sunshine and the Pacific Ocean, but the Golden State does few favors for the small-business owner, according to the survey. It reports that the three worst cities for small businesses are located here: Los Angeles, San Diego and Sacramento.

Below are some other findings from the report:

  • Idaho, Nevada and Delaware boast the most small-business-friendly tax codes, with California and New Mexico offering the least friendly.
  • The southern portion of the US. is the most friendly to small businesses and New England is the least.
  • Small business owners in Nebraska are the most likely to believe things will improve for their enterprise this year. Those in Iowa are the least.

This study probably isn't going to persuade any of you to pack up and move, but it does serve as a means of taking a closer look at what doesn't work in your region and discovering another area where the issue was resolved.

How do you rate your state and county's friendliness to small businesses? Let us know in the comments below.

Mikal E. Belicove is a market positioning, social media, and management consultant specializing in website usability and business blogging. His latest book, The Complete Idiot’s Guide to Facebook, is now available at bookstores. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Marketing

Social Media Savvy CEOs Are the Ones Impressing Customers. Here's How to Make Yourself (and Your Brand) Memorable.

CEO impact goes beyond the boardroom. Learn how executive visibility affects your brand and why a strong leadership branding strategy is so critical to your bottom line.

Making a Change

Save Hundreds of Dollars and Learn up to 14 Languages with Daily 15-Minute Sessions on Babbel

Build expanded communication tools for international business ventures.

Side Hustle

These Brothers Had 'No Income' When They Started a 'Low-Risk, High-Reward' Side Hustle to Chase a Big Dream — Now They've Surpassed $50 Million in Revenue

Sam Lewkowict, co-founder and CEO of men's grooming brand Black Wolf Nation, knows what it takes to harness the power of side gig for success.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Science & Technology

3 Major Mistakes Companies Are Making With AI That Is Limiting Their ROI

With so many competing narratives around the future of AI, it's no wonder companies are misaligned on the best approach for integrating it into their organizations.

Leadership

How a $10,000 Investment in AI Transformed My Career and Business Strategy

A bold $10,000 investment in AI and machine learning education fundamentally transformed my career and business strategy. Here's how adaption in the ever-evolving realm of AI — with the right investment in education, personal growth and business innovation — can transform your business.