What Leads to Successful Small Business Communities?

Small businesses make up a majority of net new jobs created for near the past two decades according to the Small Business Administration (SBA). This week, the SBA is celebrating National Small Business Week. A survey by Thumbtack and the Kauffman Foundation was recently published on the friendliest small business areas around the nation on the attitudes from over 6,000 respondents.

Complex tax codes and local regulations topped concerns among business owners in the survey. However, there?s another side to the study worth considering and that?s what I want to expand on.

Successful small business communities are ones that truly empower their entrepreneurs with helpful training and education programs to support growth. In the study, they?ve found that awareness of business-oriented training programs have seen a 10% lift in the perception their state was ?friendly? towards small businesses. However, the study shows a significant difference between business owners who are aware of local training programs and those who actually attended them.

Map of the Friendliest States for Small Businesses (Source: Thumbtack)

The most prominent factor in the perception of small business friendliness was a business owner?s financial outlook over the next 12 months, according to the study.

Small businesses and their communities need support financially and vocationally from their cities and states. Here are some suggestions that could improve your state?s small business friendliness:

• Provide resources and training to navigate local regulations. This is important. If cities wish to attract and retain entrepreneurial talent, they must set the foundation to help business owners thrive in their area with informative and engaging growth programs.
• Offer incentives for growth. Offer attractive tax models that promote expansion and job growth. For instance, in Arizona, we provide a tax credit program that is favorable for investors in Arizona-based small businesses.
• Improve entrepreneurial training programs and/or their marketing. The difference between being aware and attending a local small business training program can?t be ignored. This means that the content could stand to be updated and could benefit from more widespread promotion to entrepreneurs.

Do you feel your local area is friendly towards small businesses ? how come? Share it in the comments below.

Image credit: mmdesignoffice

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