Iowa’s small business climate gets mixed rating

Published: Wednesday, June 25, 2014 11:40 a.m. CDT

(MCT) — A new survey found that while Iowa is a great place to start a small business, it struggles to support them once they are up and running.

The state scored well in overall friendliness, licensing and ease of starting a business but received poor marks for training and networking programs, employment, zoning, and health and safety.

The survey, released by in partnership with the Kauffman Foundation, ranked states on a variety of factors, including regulations, tax code and ease of hiring.

“After a two-month survey of thousands of small business owners, Iowa’s small businesses have placed the state near the top for its friendliness,” said Jon Lieber, chief economist of

The top-rated states overall were Utah, Idaho, Texas, Virginia and Louisiana while the lowest rated were Rhode Island, Illinois, California, Connecticut and New Jersey.

“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.

Other key findings include:

•Iowa was one of only a few states where female entrepreneurs were more optimistic about the state’s economic outlook than their male counterparts — rating their outlook 7 percent higher on average.

•Iowa’s environmental regulations earned an A from small business owners, rating it the fifth highest in the country.


©2014 The Gazette (Cedar Rapids, Iowa)

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