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      Minnesota Ranked Among Best States to Own a Small Business

      Posted on April 11, 2013 at 12:29 PM

      "When it comes to how business-friendly an area is, smaller companies care about much more than just taxes." - Governing Magazine

      This month, Governing Magazine (one of the most credible sources of nonpartisan news and policy analysis covering state and local governments) reported the results of a new survey conducted by and the Ewing Marion Kauffman Foundation ranking the Most (and Least) Small Business-Friendly States in the country. 
      According to the survey, Minnesota ranked 11th in the nation for overall business friendliness, confirming our state remains one of the best places in the United States to start, own, and expand a small business.
      According to Governing Magazine:
      “When it comes to how business-friendly an area is, smaller companies care about much more than just taxes...Training and networking programs were found to be the best predictor of overall scores, followed by a state’s economy and licensing requirements.
      “In fact, the majority of businesses surveyed didn’t think their taxes were unfairly high. The larger the business, though, the more negatively it perceived its taxes.
      “When a small business owner decides where to set up shop, they’re most likely to choose where they already reside. For this reason, taxes typically aren’t their chief concern initially, said Katie McConnell, a senior associate with the National League of Cities’ Center for Research and Innovation.”
      Neighboring Wisconsin ranked 17th for overall business friendliness, and Iowa ranked 21st. In addition to being ranked the 11th best state to own a small business, Minnesota received an A- grade for overall business friendliness, which was a marked improvement from the B grade Minnesota received in 2012.
      You can read more about the survey, and how Minnesota’s small business environment compares to other states, on the website. 

      Governor Dayton’s Budget Would Make Minnesota’s Economy Stronger

      Minnesotans need a strong economy we can depend on for good jobs, living wages, and a strong middle class. That is why Governor Dayton’s budget invests in measures to create jobs, strengthen our infrastructure, and make Minnesota a more competitive place to do business. These investments will yield new jobs, vibrant communities, and additional state and local tax revenues that will far exceed these initial investments.
      Investing an Additional $86.5 million in Economic Development
      Creating thousands of jobs by leveraging $1.475 billion in private investment.

      • $30 Million for the Minnesota Investment Fund (MIF). The Governor’s budget provides loans to bring new businesses to Minnesota, and help existing businesses expand. This will increase MIF tenfold, create thousands of new jobs, and leverage $800 million in additional investment.
      • $25 Million for the Minnesota Job Creation Fund. The Governor’s budget invests in a new statewide performance-based incentive program for businesses that will create thousands of jobs and leverage $450 million in additional private investment. 
      • $20 Million for the Transportation Economic Development (TED) Program. The Governor’s budget invests in road and bridge improvements that promote economic development. This measure will create thousands of jobs and leverage $35 million in local and private investment.
      • $10 Million for the Housing and Job Growth Initiative. The Governor’s budget invests in affordable housing to support business expansion in Greater Minnesota communities.
      • $1.5 Million for the Global Competitiveness Initiative. The Governor’s budget invests $1.5 million to: 1) establish three new trade offices in foreign markets; 2) help small businesses participate in trade activities; and 3) communicate the benefits of doing business in Minnesota.
      • $4 Million for Forestry. The Governor’s budget increases funding for the forestry program at the Department of Natural Resources.  This will allow the department to harvest more wood, increasing the supply and lowering the price of wood available to companies that produce forest products. 
      • $346.5 million Unemployment Insurance Tax Cut. The Governor’s budget cuts UI taxes by $346.5 million, saving Minnesota employers more money to invest in their businesses and our economy.
      • E-Fairness. The Governor’s budget collects sales tax for online transactions, totaling around $5 million per year, which will level the playing field for businesses that compete with online retailers.