Financial Advisor 68%
Other Small Business Owners 65%
Nationally Recognized Expert 29%
Local Nonprofit/Governmental 26%
Source: Bank of America Small Business Owner Report, 2012
Starting a new business is tough in any economic environment. According to the latest 2012 Kauffman Index of Entrepreneurial Activity, these ten states saw the greatest start-up activity.
#1. Arizona Low business & property taxes, and a highly educated workforce.
#2. Texas No personal or corporate taxs with reasonable labor and housing costs
#3. California A surprise, but start-ups are attracted
#4. Colorado Business owners are welcomed with state funded programs for entrepreneurs and small business owners
#5. Alaska No state income tax and no sales tax. The best business start-ups are restaurants and seasonal boutiques catering to tourists
#6. Missouri Low taxes and cheap electricity
#7. Nevada No business income tax, no estate or franchise tax. Low income taxes
#8. Vermont An extensive venture capital network for start-ups. A highly skilled workforce
#9. Idaho Overall low-cost of living and low electricity costs
#10. Florida Small businesses make up 75% of state’s GDP. No personal income tax. Relaxed regulatory restriction and reduced business taxes
There is no “one path” to small business ownership. The reason for starting a business is as varied as the entrepreneurs themselves. Bank of America’s 2012 Small Business Owner Report reveals the following reasons—–
* Desire for independence (I want to be my own boss) 30%
*Trade expert (I want to become an expert in my field) 19%
*Generational ( I inherited the family business) 16%
*Career changer (I wanted to try something different) 15%
*Necessity ( I lost my job) 9%
*Serial entrepreneur ( I start and purchase businesses regularly) 9%
Younger business owners aged 25-34 are mostly business owners out of necessity (9%) or have inherited the family business(16%). For those aged 45-65 the reasons for starting a business are independence and trade expertise.