Report says R.I. one of worst states for entrepreneurs

THE SMALL BUSINESS & ENTREPRENEURSHIP COUNCIL has ranked Rhode Island among the worst states for entrepreneurs.
THE SMALL BUSINESS & ENTREPRENEURSHIP COUNCIL has ranked Rhode Island among the worst states for entrepreneurs.

PROVIDENCE – Rhode Island ranks among the worst states for entrepreneurs according to the Small Business & Entrepreneurship Council.
The nonprofit council’s 19th annual report, “Small Business Policy Index 2014: Ranking the States on Policy Measures and Costs Impacting Small Business and Entrepreneurship,” was released this week, and rates all 50 states according to 42 different policy measures.
Rhode Island ranked 40th, landing it among states with the most negative policy environments for entrepreneurs. Connecticut was No. 41, and Maine, Iowa, Oregon, Vermont, Minnesota, Hawaii, New York, New Jersey and California comprised the rest of the bottom 10.
The best states for entrepreneurs?
In order they are, South Dakota, Nevada, Texas, Wyoming, Florida, Washington, Alabama, Indiana, Colorado and North Dakota.
The report said Rhode Island has gone from being a “summer playground for the wealthy – such as in Newport – to being a state with a struggling economy.”
The report cited decades of changes, including new and higher federal taxes, as a reason, as well as actions of state policymakers.
“While Rhode Island’s entrepreneurs, businesses, investors and workers benefit from a fairly low level of government workers, the negatives for the state are considerable, including high corporate income, corporate capital gains, property, unemployment, gas, diesel and wireless taxes; and high levels of state and local government spending and debt,” the report said.
Raymond J. Keating, SBE Council’s chief economist and author of the study, noted, “The Small Business Policy Index provides the most comprehensive comparison of state policies that affect entrepreneurship, small business and investment. And make no mistake, tax, regulatory, government spending and other governmental performance and cost measures matter state by state. Consider that when it comes to economic growth, population growth and shifts in population among the states, for example, the top 25 states on the Index perform, on average, far better than the bottom 25 states.”
Read the report HERE.

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1 COMMENT

  1. They don’t have a clue…their criteria is wrong so it’s not surprising they came up with the wrong answer…..Perhaps they should look into the innovation and intellectual property that gets created in RI compared to other states…the true capital of entrepreneurship, not gov’t policy