SAN FRANCISCO -- Thumbtack, the website and app that locates local professionals, announced Tuesday the results from its 2018 Small Business Friendliness Survey, ranking all 50 states and 57 cities based on factors including licensing requirements, tax regulations, and labor and hiring regulations.
Thumbtack surveyed more than 7,500 local small business owners to evaluate how easy state and local governments make it to start, operate, and grow a small business, according to the organization. South Dakota, Tennessee and Alaska, and Fort Worth, Texas, San Antonio, Texas, and Columbus, Ohio are among the top states and cities for 2018, respectively, each earning an A+ for small business friendliness.
"Small business entrepreneurs are creating sustainable jobs, and policymakers must continue to empower this segment of the workforce," said Lucas Puente, lead economist at Thumbtack. "It is critical for local, state and federal governments to support small business owners as they adapt to rapid change and innovation in today's economy."
Key Drivers
In this seventh year of the survey, small business owners revealed four major priorities:
Small businesses deserve a bigger spotlight. Small business owners increasingly feel that government is prioritizing corporations and large businesses over the small businesses that drive the American economy. Nearly 70 percent of small business owners think their local government cares more about attracting and supporting new corporations, while only 30 percent believe that supporting local small businesses is the priority.
Health care is still a big financial deal. For small business owners and entrepreneurs, access to affordable health care is one of the biggest policy issues impacting their ability to stay in business. As political rhetoric and posturing affect the costs of monthly health insurance premiums, small business owners want less talk and more relief.
Mobility remains a challenge. This year, small business owners reported that issues like rising housing prices and increasing transportation costs are making it more difficult to work where they live and travel to customers.
Training for the future is key. As new technologies appear and traditional jobs change, training will matter more than ever.
Highest ranked states
1. South Dakota (A+)
2. Tennessee (A+)
3. Alaska (A+)
4. Michigan (A+)
5. Utah (A+)
6. Georgia (A)
7. Texas (A)
8. South Carolina (A)
9. North Dakota (A-)
10. Maine (A-)
Highest ranked cities
2. San Antonio, Texas (A+)
3. Columbus, Ohio (A+)
4. Colorado Springs, Colo (A+)
5. Jacksonville, Fla (A+)
6. Nashville, Tenn (A+)
7. Charleston, S.C. (A)
8. Manchester, N.H. (A)
9. Raleigh, N.C. (A)
10. Charlotte, N.C. (A-)
Lowest rankedstates
50. Illinois (F)
49. Hawaii (F)
48. Rhode Island (D)
47. New Mexico (D)
46. Kentucky (D)
Lowest ranked cities
57. San Francisco, Calif (F)
56. Honolulu, Hawaii (F)
55. Anaheim, Calif (F)
54. San Diego, Calif (F)
53. Riverside, Calif (F)
Survey Methodology
Between June 4, 2018 and July 16, 2018, Thumbtack surveyed 7,629 small business owners from across the U.S. operating across hundreds of categories, including as electricians, music teachers, wedding planners, and wellness professionals. The survey asked these entrepreneurs about the policies of their states and cities toward small business, as well as the overall level of support in their community. For the survey methodology, please visit: https://www.thumbtack.com/survey.