How Some States Are Attracting Small Business

Nikada | iStock | Getty Images
Nikada | iStock | Getty Images

Venus Hurst could have set up her two businesses almost anywhere. But she chose Detroit, Michigan, to run her international staffing agency, Venus Staffing, which she founded more than a decade ago, and Doll Face, a cosmetics start-up launched in 2011.

Hurst finds Michigan’s environment very friendly to entrepreneurs like herself, thanks to programs like a property tax break the state makes available to commercial businesses like hers. The ease of doing business has freed her to focus on growing the staffing firm, which brings in about $500,000 in annual revenue.

“Michigan doesn’t have too many regulations for small business,” said Hurst. “You can get a tax break for just having a business here,” she added, pointing to a property tax cut available to commercial businesses. Meanwhile, other entrepreneurs are flocking, thanks to efforts to revive Detroit following the city’s bankruptcy filing last summer. “There are a lot of small businesses coming here,” she said.

Read MoreA 2014 scorecard on how America’s states stack up

At a time when many states are looking to attract job-creating businesses to their cities, more are getting serious about making themselves inviting to entrepreneurs. According to a recent study cited by the Kauffman Foundation for Entrepreneurial Leadership, 95 percent of municipalities offer some type of incentive to run a business within their borders. But given the number of states and localities offering incentives, they alone aren’t always enough to attract entrepreneurial talent.

Here are five key attributes that states should offer if they hope to attract and retain small businesses.

Click here to read more

Source: CNBC | 

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