Louisiana Ranks 20th in Nation for Entrepreneur-Friendliness
Louisiana provides about an average policy environment for small businesses, according to a new study.
In its 19th edition, the Small Business Policy Index 2014 rated Louisiana No. 20 in the nation for most entrepreneur-friendly states.
The index measures 42 factors regarding taxes, regulations, government spending and debt, and other government activities. Louisiana fared in the top 10 for state and local property taxes, adjusted unemployment taxes and state gas taxes. The state fell short in gross receipts and excise taxes (No. 47), workers’ compensation employer costs (No. 39), government five-year spending trends (No. 46), and per capita state and local government expenditures based on 2010-2011 figures (No. 38).
Overall, the index rated South Dakota best for entrepreneurs, and California last. Louisiana ranked 21 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 Louisiana a small business-friendly state? Tell us why or why not in the comments section below.