08/04/2005
A new study by the Small Business Administration Office of Advocacy shows state lawmakers that decisions made in the statehouse directly affect entrepreneurial growth.
While focused on state bankruptcy exemptions, the study also set out to find how other issues like taxes and access to affordable health care affect business starts and closures.
The study found that lower taxes in neighboring states increase the probability of business closures in nearby states with higher tax rates. It also found that workers with employer-provided health insurance are less likely to leave their jobs to start a business.
“This report should be helpful for state policymakers,” said Chief Counsel for Advocacy Thomas Sullivan. “Their actions have consequences, not only for entrepreneurs in their states, but in the states surrounding them. Make it difficult for entrepreneurs to flourish and you’ll find that their ideas, their creativity, their job creation, and their economic growth will simply go elsewhere.”
