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The Best States for Entrepreneurs

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This story appears in the August 2013 issue of Entrepreneur. Subscribe »

Two hundred and twenty-five years after the U.S. Constitution was ratified, the push and pull of states' rights is still fought over by politicians. But Washington's dysfunction is an entrepreneur's gain. By letting each state define its own business regulations, taxes and policies, the founding fathers created a competitive marketplace for industries of all sizes looking to put down roots.

Today we have a solid grasp on which states are primed to jump-start new businesses and help them grow, thanks to a survey of 7,766 small businesses pulled together by the Ewing Marion Kauffman Foundation's partnership with San Francisco-based Thumbtack, an online marketplace for professional services. The states on this list scored the highest, receiving overall grades of A+ across 16 categories (including ease of hiring, tax-code friendliness and training/networking program availability).

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