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Contact: Raymond J. Keating, 703-242-5840, or 631-909-1122

Small Business Survival Index 2008 Ranks State Policy Climates for Entrepreneurship

Oakton, VA - Today, the Small Business & Entrepreneurship Council (SBE Council) released its 13th annual rankings of the states according to their public policy climates for small business and entrepreneurship in the "Small Business Survival Index 2008: Ranking the Policy Environment for Entrepreneurship Across the Nation."

SBE Council chief economist Raymond J. Keating, author of the study, said: "The U.S. economy is in a serious downturn, and the outlook for a robust recovery seems remote. That means state and local policymakers face some very difficult decisions, especially on budget matters. Depending on the policy course that state lawmakers choose, they can either make the economic situation in their own state better or far worse."

Keating continued: "A significant impediment to small business, entrepreneurship and investment is public policy gone awry.  Quite often, policies have unintended consequences for small businesses when they raise costs, create uncertainty and diminish incentives for starting up, investing in and building a business.  On the other hand, positive policies can be advanced that enable small business growth, job creation and entrepreneurship.  The ‘Small Business Survival Index' measures these policy actions."

The "Small Business Survival Index" serves as the most comprehensive measure of the states in terms of which ones offer the most conducive environment for small businesses, and those that make it more difficult for entrepreneurs from a government-cost perspective.  The factors included in the Index - taxes, various regulatory costs, government spending, property rights, health care and energy costs, and much more - matter a great deal to the competitiveness of each state and to the well being of small business.

The 2008 Index has been expanded to cover 34 major government-imposed or government-related costs affecting small businesses and entrepreneurs.  The measures are added together for an overall rating.  The report is available at http://www.sbecouncil.org/. (Look for the Index icon on the right side of the website's front page.)

In terms of their policy environments, the most entrepreneur-friendly states under the "Small Business Survival Index 2008" are: 1) South Dakota, 2) Nevada, 3) Wyoming, 4) Florida, 5) Washington, 6) Texas, 7) South Carolina, 8) Alabama, 9) Virginia, and 10) Colorado.  The more difficult state policy environments for entrepreneurs include: 40) West Virginia, 41) Hawaii, 42) Iowa, 43) Vermont, 44) Massachusetts, 45) New York, 46) Minnesota, 47) Rhode Island, 48) Maine, 49) California, 50) New Jersey and 51) District of Columbia.   Complete rankings are found below.

Following are the complete state rankings for the "Small Business Survival Index 2008":

Small Business Survival Index 2008: State Rankings

Rank   State                            SBSI 2008

1          South Dakota                26.357

2          Nevada                         30.447

3          Wyoming                      37.255

4          Florida                          43.824

5          Washington                   44.325

6          Texas                           45.543

7          South Carolina               48.012

8          Alabama                       48.807

9          Virginia                         49.073

10        Colorado                       50.170

11        Tennessee                    51.310

12        Georgia                        52.330

13        Arizona                         52.535

14        Missouri                        52.880

15        Utah                             53.028

16        Alaska                          53.228

17        Mississippi                    53.367

18        Ohio                             53.853

19        Michigan                       54.180

20        Indiana                        54.325

21        Oklahoma                    54.551

22        North Dakota                56.206

23        Kentucky                      56.373

24        Illinois                         56.404

25        Pennsylvania                57.108

26        Wisconsin                    57.601

27        Louisiana                    57.752

28        New Hampshire           57.795

29        New Mexico                 58.054

30        Arkansas                     58.511

31        Kansas                        58.965

32        Oregon                        60.420

33        Montana                      60.625

34        Delaware                     60.856

35        Idaho                          61.614

36        Nebraska                     62.359

37        Connecticut                  62.685

38        Maryland                     63.289

39        North Carolina             63.943

40        West Virginia               65.384

41        Hawaii                         67.395

42        Iowa                           68.354

43        Vermont                      70.316

44        Massachusetts             71.239

45        New York                     71.835

46        Minnesota                   71.910

47        Rhode Island               72.671

48        Maine                          74.553

49        California                     77.358

50        New Jersey                   78.130

51        Dist. of Columbia          83.751

(Please note that the District of Columbia was not included in the studies covering three of the measures included in the Index, so D.C.'s last place score actually should be even worse.)

For a copy of the "Small Business Survival Index 2008," please visit this link: http://www.sbecouncil.org/uploads/sbsi%202008[1]1.pdf.

SBE Council is a nonpartisan, nonprofit small business advocacy group that works to protect small business and promote entrepreneurship. For additional information, please visit: http://www.sbecouncil.org/.

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