Iowa Ranks 43rd in Nation for Entrepreneur-Friendliness

Date: February 03, 2015

New study gives state poor marks.

Iowa rated poorly in a new study ranking the states on small business friendliness.

The Small Business Policy Index 2014 rated Iowa 43rd in the nation for most entrepreneur-friendly states.

The index measures 42 factors regarding taxes, regulations, government spending and debt, and other government activities. Iowa fared particularly poorly in the categories of top corporate income tax rates and top corporate capital gains tax rates (49th for both). However, it tied for 11th best in crime rate and tied for ninth best in per capita state and local government debt, based on 2010-2011 figures.

Overall, the index rated South Dakota best for entrepreneurs, and California last. Iowa ranked 43nd on 2013’s list, though the criteria has changed since then.

The study also linked the better-performing states, on average, to better economic growth and population growth.

“Make no mistake, tax, regulatory, government spending, and other governmental performance and cost measures matter state by state,” Raymond J. Keating, SBE Council’s chief economist and author of the study, said in a statement. “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.”

Is Iowa a small business-friendly state? Tell us why or why not in the comments section below.


Related Content: Small Business News | Economy | Iowa

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