Georgia ranks No. 5 in the nation in least burdensome regulatory environments for small business, according to a study.
Many factors influence small business growth in each state, including geography, historical growth patterns, tax policies and state regulatory policies. The Pacific Research Institute released a study ranking states on how burdened they are by state regulations. Georgia ranked No. 5.
The 50-State Small Business Regulation Index ranks the nation based on the impact from each state’s regulatory environment on small biz. The Index’s purpose is to compare environments that are associated with slower business growth versus more robust small business growth, the report says.
Among a string of other strengths putting it in the top 5 of the rankings, Georgia most notably saw a 6.56 percent net change in business between 2002 and 2011, compared with a national average of 2.86 percent. It also did better than the average state at retaining jobs over that time, with a net loss just below zero for the same time period. Its small businesses benefit from the fact that Georgia maintains the $7.25 per hour national minimum wage, it is a right-to-work state, abides by the Family and Medical Leave Act, does not require short-term disability insurance and is not an alcohol control state. A downside is that it has only notably suffered in that it has endured telecommunication regulations and high startup and filing costs for businesses.
