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Business friendly state and local governments

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Idaho, Texas, Oklahoma and Utah were found to be the friendliest places for small businesses, according to a recent report conducted by Thumbtack.com and the Ewing Marion Kauffman Foundation.

These states all earned an"A+" in the report, while California, Hawaii, Vermont and Rhode Island were given an "F" grade. Higher grades were received by states if they had state or local governments that provide training opportunities for small business owners.   

"Six thousand small business owners have told an unusually nuanced story about what they value in their local government," said Sander Daniels, co-founder of Thumbtack.com. "Although Texas and Idaho clearly come out on top as the nation's friendliest states towards small business, entrepreneurs value a lot more than just low tax rates."

Lower grades were given to states if they had higher tax rates for small businesses, and if licensing requirements were more difficult to meet for prospective small business owners. The three lowest scoring cities in the report were the California cities of Los Angeles, San Diego and Sacramento.

While a strong pro-business environment can bring success for small enterprises, it is important for all businesses to be protected by the correct forms of business insurance, which can provide crucial protection in case problems arise.

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