SBE Council ranks Kansas 30th in small business climate

Kansas ranks 30th in the nation in terms of its public policy climate for small business and entrepreneurship, according to a study by the Small Business and Entrepreneurship Council.

Last week, the SBE Council released its 12th annual rankings of all states according to their public policy climates for small business and entrepreneurship in the Small Business Survival Index 2007. The index ranked Kansas 30th in the nation with a 59.85 overall rating.

"We're in a period of questions and uncertainty when it comes to the economy," according to SBE Council Chief Economist Raymond J. Keating, the author of the study. "It is critical for elected officials in the states to understand that their policies affect the decisions of entrepreneurs, businesses and investors, the bottom lines of small businesses, and the lives of employees. All of this tallies up to a very big deal for a state's economy."

SBE Council President and CEO Karen Kerrigan added, " The Index helps political leaders and policymakers understand whether their state truly supports an environment that is enabling to entrepreneurship and small business growth. Capital and labor are increasingly seeking more friendly terrain, and if a state is losing business and business investment, the Index can help leaders determine how they stack up -- both generally and in specific tax or regulatory cost areas."

The Index has been expanded again this year, and is perhaps the most comprehensive gauge available of how state and local policymakers treat entrepreneurs and small businesses. Covered are taxes, various regulatory costs, government spending, property rights, health care and energy costs, and many more, according to a statement from the council.

The 2007 Index considers 31 major government-imposed or government-related costs affecting small businesses and entrepreneurs. The measures are added together for an overall rating. The entire report is available online at www.sbecouncil.org.

"Some elected officials, policymakers and special interests believe that taxes, regulations and other governmental costs can be increased with impunity," Keating explained. "Economic reality tells a different story. Ever-mounting burdens placed on entrepreneurs and small businesses by government negatively affect economic opportunity. The Small Business Survival Index tries to make clear the relative governmental burdens placed on entrepreneurship among the states, so that business owners and their employees, elected officials and citizens in general can better grasp the competitive position of their respective states."

In speaking about Kansas, Keating added, "Kansas entrepreneurs and small businesses benefit from, for example, no individual and corporate AMTs, being a right-to-work state, and an excellent rating on highway cost effectiveness. As for the negatives, they include a death tax, a high individual capital gains tax, and the large size of the government workforce."

South Dakota ranked first on the Index with a 25.9 overall rating, while the District of Columbia ranked last with a 81.9 overall rating.

To obtain a copy of the Index, visit the SBE Council Web site or contact the council at (703) 242-5840. SBE Council is a non-partisan, non-profit small business advocacy group that has been working to protect small business and promote entrepreneurship for more than a dozen years.