When it comes to being business-friendly, Minnesota is a “B” student.
A survey, done by Thumbtack.com, an online marketplace that connects service providers with consumers, appears to counter previous business-related assessments which focus on state taxes.
Minnesota is generally considered a high-tax state but the survey found that taxes were not statistically significant in defining whether a state is friendly to small businesses.
The highlights of the Minnesota portion of the survey:
- Minnesota rated 5th when it came to ease of starting a business.
- Small businesses rated Minnesota’s training and networking programs at number two overall nationwide, given them an A+ grade.
- Female entrepreneurs in Minnesota rated the friendliness of their state government 7 percent higher than their male counterparts.
- Minnesota received C or C+ grades for its regulations, including the friendliness of health and safety, labor, licensing, regulations and the friendliness of the tax code.
This is the second year in a row Minnesota has scored highly for the ease of starting a new business.
The top-rated states were Utah, Idaho, Texas, Virginia and Louisiana.
“Minnesota has emerged as a top place for starting a business,” Jon Lieber, chief economist of Thumbtack, said in a release. “Creating a business climate that is welcoming to small, dynamic businesses is more important than ever, and small businesses have recognized Minnesota for providing support.”
In its categories — such as starting a business, tax code, regulations — the state got B’s and C’s in 2012. In the most recent survey, Minnesota got a “B” in “overall friendliness.”
Over the last year, the Twin Cities, in particular, jumped from a “B” to an “A” in overall friendliness. It also jumped a grade in regulations (B-), health and safety (B), licensing (B-), environment (B), and went from a “C-” to an “A” in training and networking programs.
The Los Angeles Times notes that because the questionnaire was hosted online, “the educational level of participants was higher than the average American business owner.”