Another survey of business climate, another reminder that Rhode Island isn’t nearly as friendly to the business community as most other states.
This time, it’s the Small Business & Entrepreneurship Council (formerly the Small Business Survival Committee) delivering the sobering news.
The SBEC has released its rankings of the states according to their respective public policy climates for small business and entrepreneurship in the “Small Business Survival Index 2004.”
According to the SBEC, the idea of the index is to expose whether state and local governments turn out to be a plus or a minus when it comes to entrepreneurial decision-making. Specifically, just how weighty are the costs that elected officials impose on entrepreneurs, small businesses and their employees state by state?
“Most elected officials talk about how much they love small business,” said SBEC President Karen Kerrigan. “Some follow through in their actions, but others impose policies that are harmful to small business and entrepreneurship.”
The SBEC index uses a variety of measurement tools, including S-Corporation tax treatment, workers’ compensation statistics, a state’s status regarding regulatory flexibility statutes and an assortment of government-imposed or government-related costs affecting small businesses and entrepreneurs. Various taxes are also calculated.
So how did we do? Not good. The most entrepreneur-friendly states, according to the SBEC index, are South Dakota, Nevada, Wyoming, Washington and Florida. Rhode Island ranks 48. The good news? We’re evidently more business friendly than Hawaii and California.
So does it matter?
It might.
Raymond J. Keating, the SBEC’s chief economist, suggests that it does.
“How the states rank on the Small Business Survival Index has a real effect on the economy,” he said. “For example, population growth has been much faster overall in states ranking in the top half of the index, compared to those in the bottom half.”
To take a look at the entire report, visit www.sbecouncil.org.
Some other random thoughts…
– Giving even more credence to the theory that Rhode Islanders like to take care of their own, Rhody Fresh Milk appears to be enjoying a surge in popularity. The number of local stores carrying Rhody Fresh Milk has grown from just over 20 to nearly 100.
Five area farms – Dutra Farm in Jamestown, Meadowburg Farm in Richmond, Tomaquag Valley Farm in Bradford, Cottrell Homestead in West Kingston and Escobar’s Highland Farm in Portsmouth – began producing and distributing the locally produced milk this past July.
Jim Hines, executive director of the Rhode Island Dairy Farms Cooperative, announced another milestone for the program last week. Rhody Fresh Milk is now being offered in gallon containers at several locations. Until recently, it had been available in half-gallon containers only.
– Congratulations to Tony Mendez and Poder 1110AM WPMZ for being honored last Monday by the Association of Fundraising Professionals – Rhode Island chapter as the Outstanding Philanthropic Business of the year.
– We hope you like our redesigned look. The improvements to the paper would not have been possible without the efforts of Creative Circle Media Consulting, a Providence-based company that redesigns and consults newspapers all over the country. Bill Ostendorf, the company’s founder and president, and Jennifer Boucher, a designer, spent countless hours working with us to improve both our look – and feel.
