December 14, 2012

State of Alabama
Press Release: Alabama Department of Commerce

Alabama Seventh-Best State for Entrepreneurship, Analysis Finds

December 13, 2012

The Small Business & Entrepreneurship Council ranked the states based on 46 state and local government policy and economic measures, including tax burden, regulatory expenses, the cost of electricity, crime rate, health care costs and education reform and standards.

The five states judged to be most friendly to entrepreneurs were South Dakota, Nevada, Texas, Wyoming and Florida. The five judged to be least friendly were Maine, New York, Vermont, New Jersey and California.

Alabama fell near the middle of the pack in most of the components of the study, with a handful of exceptions:

--Alabama ranked No. 1 for lowest state and local property tax rates, which average 1.6 percent of personal income.

--The state ranked No. 2 for fewest health insurance mandates.

--It ranked ninth among states for low per capita state and local government debt.

Karen Kerrigan, president of the organization, said state policy often is overlooked as businesses focus on national issues, but it has a major effect on entrepreneurs and businesses.

"The difference in policy costs from state to state can be quite striking, and that matters for entrepreneurship and for a state's economy," she said in a prepared statement.



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