The Washington Post

Closed for business: The least friendly states toward small companies

Looking for a place to launch the next great technology start-up company? Look no further than well-known innovation hubs in California, Massachusetts and New York.

But if you want to open a traditional small business, perhaps you should look elsewhere.

Those three states are among the least welcoming for small firms, according to new rankings from and the Kauffman Foundation, which surveyed more than 6,000 small business owners across the country. One dozen states received below-average grades, all of them located either out west or north of the Mason-Dixon line. On the other hand, Texas, Idaho, Oklahoma and Utah each received top marks for the manner in which they cater to the needs of small companies.

For a closer look at the least small-friendly states, check out the slideshow above.

Does your state cater to the needs of small firms? Share your thoughts in the comments below.

Follow On Small Business and J.D. Harrison .

J.D. Harrison covers startups, small business and entrepreneurship, with a focus on public policy, and he runs the On Small Business blog.
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