July 30, 2001

Washington, D.C.-Today, the Small Business Survival Committee (SBSC) released its sixth annual rankings of the states according to their respective policy climates for small business and entrepreneurship in the "Small Business Survival Index 2001."

According to SBSC chief economist Raymond J. Keating, author of the study, "'The Small Business Survival Index 2001' offers a gauge by which to measure and compare how government in the states treat small businesses and entrepreneurs.  Since small business serves as the backbone of the U.S. economy-for example, by providing the bulk of new jobs and majority of innovations-every state and local lawmaker should be concerned with the well-being of small business."

"In an increasingly mobile and competitive national economy, differences in government-imposed costs of doing business can make a huge difference between whether a state grows economically or falls behind," states SBSC president Darrell McKigney.  "The purpose of the 'Small Business Survival Index 2001' is to let citizens and lawmakers know how they stack up with the rest of the country in terms of being friendly to small businesses and economic growth."

The "Small Business Survival Index 2001" ties together 17 major government-imposed or government-related costs impacting small businesses and entrepreneurs across a broad spectrum of industries and types of businesses--personal income taxes, capital gains taxes, corporate income taxes, property taxes, sales taxes, death taxes, unemployment taxes, health insurance taxes, electricity costs, workers' compensation costs, crime rates, right to work status, number of bureaucrats, tax limitation status, Internet taxes, gas taxes, and state minimum wages. These measures are combined into one index number-the Small Business Survival Index.  

Keating notes: "The Small Business Survival Index manages to capture much of the governmental burdens impacting critical economic decisions-particularly affecting investment and entrepreneurship-state by state."

The most entrepreneur-friendly states under the "Small Business Survival Index 2001" are: 1) Nevada, 2) South Dakota, 3) Washington, 4) Wyoming, 5) Florida, 6) Texas, 7) New Hampshire, 8) Alabama, 9) Mississippi, 10) Tennessee, 11) Colorado, 12) Michigan, 13) Illinois, 14) Alaska, and 15) Virginia.  In contrast, the most anti-entrepreneur policy environments are offered by the following: 37) New Jersey, 38) Montana, 39) Iowa, 40) Ohio, 41) West Virginia, 42) Vermont, 43) New York, 44) California, 45) New Mexico, 46) Minnesota, 47) Kansas, 48) Maine, 49) Hawaii, 50) Rhode Island, and 51) District of Columbia.

Keating concludes: "The best policy environment for entrepreneurship consists of low taxes, limited government, restrained regulation, and government protecting life, limb and property.  States following such a governing philosophy will reap great rewards from America's entrepreneurs, including faster economic growth and increased job creation."

Following are the complete state rankings for the Small Business Survival Index 2001:

Small Business Survival Index: State Rankings

Rank	State	SBSI Score
1	Nevada	27.060
2	South Dakota	28.250
3	Washington	32.010
4	Wyoming	32.150
5	Florida	33.180
6	Texas	34.250
7	New Hampshire	36.250
8	Alabama	36.830
9	Mississippi	38.160
10	Tennessee	39.540
11	Colorado	39.870
12	Michigan	40.205
13	Illinois	40.290
14	Alaska	40.880
15	Virginia	41.310
16	Indiana	41.820
17	Missouri	42.213
18	South Carolina	42.520
19	Louisiana	43.304
20	Arizona	44.178
21	Massachusetts	44.755
22	Pennsylvania	44.880
23	Georgia	45.350
24	North Dakota	45.379
25	Arkansas	45.420
26	Idaho	45.590
27	Maryland	46.310
28	Oklahoma	46.920
29	Delaware	46.950
30	Wisconsin	47.380
31	Nebraska	48.430
32	Kentucky	48.610
33	Connecticut	48.830
34	Utah	49.242
35	North Carolina	49.590
36	Oregon	50.010
37	New Jersey	50.360
38	Montana	50.979
39	Iowa	51.073
40	Ohio	52.870
41	West Virginia	53.120
42	Vermont	53.514
43	New York	54.005
44	California	54.860
45	New Mexico	55.410
46	Minnesota	55.890
47	Kansas	55.980
48	Maine	56.150
49	Hawaii	57.235
50	Rhode Island	59.011
51	District of Columbia	65.335

For a copy of the "Small Business Survival Index 2001," visit SBSC's website at www.sbsc.org. SBSC is a national nonpartisan, nonprofit small business advocacy group headquartered in Washington, D.C.