Illinois Ranks as ‘Worst’ For Small Businesses

by Warner Todd Huston | June 16, 2014 2:13 pm

Once again Illinois and California are neck-and-neck in the calculations for the worst of the worst U.S. states, this time in a measure of how friendly the states are for the growth of small businesses.

Earlier this month thumbtack.com[1] released its third annual survey[2] of the climate for small businesses exploring such ratings as the overall friendliness of the state to small businesses, the ease of starting a business, regulations, ease of hiring new employees, taxes, and other criteria.

The poll was conducted among over 12,000 small business owners across the country.

The survey, held in conjunction with the Kauffman Foundation, found that the worst states for small businesses were California, Rhode Island and Illinois, all of which got a Thumbtack “F” rating. The next worst were Connecticut and New Jersey, both of which received a “D” grading.

Illinois has descended in its rating each of the three years that the survey has been conducted having earned a “D+” in 2012, a “D” in 2013, and an “F” in 2014.

“Creating a business climate that is welcoming to small, dynamic businesses is more important than ever, but rarely does anyone ask small business owners themselves about what makes for a pro-entrepreneur environment,” said Jon Lieber, Chief Economist of Thumbtack. “Thousands of small business owners across the country told us that the keys to a pro-growth environment are ease of compliance with tax and regulatory systems and helpful training programs.”

The best states are unsurprisingly Utah, Idaho and Texas. Also getting high ratings in the poll were Louisiana and Virginia–the latter undoubtedly because it is now inextricably linked to the largess of the federal government.

Texas, Utah, and Idaho have appeared at the top of the list in each of the three years the survey has been conducted.

“It is critical to the economic health of every city and state to create an entrepreneur-friendly environment,” said Dane Stangler, vice president of Research and Policy at the Kauffman Foundation. “Policymakers put themselves in the best position to encourage sustainable growth and long-term prosperity by listening to the voices of small business owners themselves.”

Thumbtack.com is a website launched in 2009 that helps people connect with local service providers such as painters, plumbers, small contractors, and the like.

For a little more context on how bad Illinois is, here are just a few more of the “low lights” of Illinois’ standing among the states:

• Illinois Ranks as ‘Worst’ For Small Businesses[3]
• Of the Fifty, Illinoisans Have Least Trust in the State Government[4]
• Poll: Even People in Illinois Say Illinois Worst State to Live In[5]
• Illinois has the most underfunded pensions in the country[6] and faces a deficit growth of $17 million per day.
• The state also has the worst funded teachers pensions[7] in the country.
• Illinois was identified as one of the worst states in the union for its oppressive, jobs-killing lawsuit climate[8]
• Illinois had more home foreclosures[9] than almost every other state.
• Illinois ranks as the 49th worst debtor state[10] in the nation.
• Illinois was ranked the 48th worst state for business[11].
• Illinois ranked 48th for unemployment[12] making it among the worst five states for joblessness.
• Its government also has one of the worst rankings for state transparency and accountability[13] in the nation, too.
• As to big city stats, Chicago tops the nation with the highest unemployment rate[14].
• Illinois has the worst credit rating[15]
• Illinois Tops Nation in Growth of Food Stamp Recipients[16]
• Mercatus: Illinois ranks at the bottom of the most free states[17]
• Illinois Ranks as One of Worst States for Losing Citizens[18]

So, we have to hand it to the Illinois Democrats and their weak sisters in the feckless Illinois Republican Party. You folks have done a great job utterly destroying one of the greatest states in the union. Great job to the dictator Michael Madigan, the hapless and ignorant Governor Pat Quinn and the rest of the worthless set running the state into the ground.