Is Texas a business friendly state?
And how do we compare to the rest of the nation? The Small Business Entrepreneurship Council provides a report that ranks all of the states on their small business survival rate. The “Small Business Survival Index” ties together 38 major government-imposed or government-related costs impacting small businesses and entrepreneurs across industries and types of businesses. These costs are items such as personal income tax, corporate tax, property taxes, health care regulations, and even crime. Since these are the items that impact the success, or failure, of small business, it makes sense to rank each state accordingly. The “Small Business Survival Index” manages to capture much of the governmental burdens affecting entrepreneurship—state by state.
Texas ranks number 3. In other words, compared to other states Texas provides greater incentives to invest and take risks than 47 other states plus the District of Columbia.
But where we fail is in educating the entrepreneur. As Dr. Larry Plummer, an assistant professor of management and entrepreneurship at the University of Oklahoma, recently said:
The commercialization of an innovation can be more difficult than the technological breakthrough in the first place. Focusing on entrepreneurship in our policies is a recognition of the other half of the story.
We need to do a better job encouraging and educating entrepreneurs across the spectrum. Plummer says that this starts in high school, continues through college, and even includes educational efforts in the business world. Entrepreneurship is a life-long learning process, often accompanied by productive failure along the way.
Check out the entire index at sbecouncil.org.