"Nothing better expresses the aspirational ideal than the notion of small enterprise as the primary creator of jobs and innovation. Historically, small business has accounted for almost two-thirds of all net new job creation, but recent research shows that the rates of new business start ups are at record lows. Policy makers ignore small business at their own peril and that of the economy. State governments can do little to directly promote enterprise and small business development, but they can increase the chances that entrepreneurs will thrive. The vitality of the U.S. economy and hopes of hardworking entrepreneurs seeking the American Dream depend on our ability to engage and compete around the world for customers, capital and resources."
U.S. Chamber of Commerce Foundation Annual Enterprising States Study - April 2013
The very thing that impressed Alexis de Tocqueville about the United States was the calm and considerate industry expressed by its multitudes of small businesses.
Small business, currently defined as an enterprise which employs 500 people or less, certainly leads the economy in job creation and overall employment numbers.
But the study quoted here states, "recent research shows that the rates of new business start ups are at record lows." And that is a problem! It further says that "small business may be down, but it is far from out."
As I have said many times, gubment cannot create jobs that add to the wealth of the whole economy. But it can create an environment conducive to job creation, particularly small job creation.
When asked, entrepreneurs suggest that there are five critical things "that state government can influence to foster small business start ups and expansion." The Annual Enterprising States Study looks at each state, and ranks the states one to another based on these criteria:
- Diversity in sources of capital
- An enabling culture
- Strong local networks
- Supportive infrastructure
- Entrepreneur-friendly government
The five states coming out on top this year are, in order: North Dakota, Texas, Utah, Wyoming and Virginia.
You can click on your own state HERE to see how your state stacks up. There are subcategories of each of the five above, and each state is ranked based on 30 criteria overall.
The entire PDF of this huge study can be viewed by clicking HERE.
What do we conclude? When people are free to establish themselves in their various specialties and interact voluntarily with each other in a free market, the overall economy thrives. It is this interaction of small business that has historically been essential to job growth and innovation, PARTICULARLY AFTER RECESSIONS.
If our leaders really wanted to goose the economy they would do everything possible to encourage an environment friendly toward small business (and business in general). Period.
IF OUR LEADERS REALLY WANTED TO KEEP THE ECONOMY SLOW, CAREER JOB GROWTH WEAK, AND CREATE MORE DEPENDENCY ON THE GUBMENT THEY WOULD NOT ENCOURAGE SUCH AN ENVIRONMENT.
SO, THE BIG QUESTION IS: AFTER YEAR AFTER YEAR OF WHAT WE ARE TOLD IS A "RECOVERY," WHY IS THE ECONOMY STILL SLOW, CAREER JOB GROWTH STILL PITIFULLY WEAK AND MONTH BY MONTH HUNDREDS OF THOUSANDS OF PEOPLE ARE STILL FILING FOR UNEMPLOYMENT BENEFITS AND BECOMING MORE DEPENDENT ON THE GUBMENT?