States Business Ranking Jumps
“Michigan was built on entrepreneurial spirit and small business is still at the heart of our ongoing economic success,” Granholm said. “With the many resources Michigan has available to promote entrepreneurship and help new companies thrive, we can expect to see even more small businesses growing in the months and years to come.”
Granholm cited Michigan’s SmartZone business accelerators and Small Business Technology and Development Centers, working in partnership with the Michigan Economic Development Corp. (MEDC), as examples of resources that are helping entrepreneurs transform their ideas and business plans into successful companies.
Michigan increased its standing from 11th overall last year in the Small Business Survival Index, an annual comparative study conducted by the SBSC that analyses 21 major government-imposed or government-related costs impacting small business. Among them are income tax rates, corporate income tax rates, state and local taxes and health care costs.
According to the index, the best policy environment for entrepreneurship and small business consists of low taxes, limited government, restrained regulation and the government’s ability to maintain a low crime rate.
According to the U.S. Small Business Administration Office of Advocacy, businesses with fewer than 500 employees account for 99.7 percent of all employers and create 60 to 80 percent of net new jobs. There were more than 211,000 non-farming small businesses operating in Michigan in 2002, employing a total of more than 2 million workers.The SBSC’s 50,000 members represent small businesses, enterprises and entrepreneurs from every industry and region across America. The Small Business Survival Index can be viewed at www.sbsc.org