Economic Development

Ohio 11th-best for small businesses

Thursday, January 7, 2010
Business Courier of Cincinnati

Ohio rates as the 11th-best state for small businesses, according to the Small Business & Entrepreneurship Council’s “Small Business Survival Index 2009.”

In addition, the Buckeye state ranks tops in the Midwest.

The index ranks states based on their public policy climate for small businesses and entrepreneurs.

The Ohio Business Development Coalition — a nonprofit that markets the state for capital investment — said the ranking shows Ohio’s efforts to redesign its business climate have paid off.

“Businesses of all sizes continue to discover the benefits of investing in Ohio. And small businesses in particular are increasingly important to the state of Ohio, helping create jobs for Ohioans, enhance our local communities and foster innovation in business,” Ohio Department of Development Director Lisa Patt-McDaniel said in a news release.

The small business survival index is a comprehensive measure of states and how friendly they are to businesses, based on taxes, various regulatory costs, government spending, property rights, and health care and energy costs.

Ohio’s corporate state taxes are on track to be the lowest in the Midwest for companies making new capital investments. As of 2010, Ohio businesses will have seen a up to a 63 percent reduction in tax burdens.

Location also plays a role, as Ohio is recognized nationally and worldwide as a business location with access to Midwestern, Central Canadian and Mid-Atlantic markets. It also has strong transportation infrastructure. Ohio is within 600 miles of 60 percent of the U.S. population and 50 percent of the Canadian population.

“Ohio’s recognition and continued improvement are evidence that our economic development strategies for creating a healthy business climate are working and further prove that Ohio should be on every CEO’s list of location options,” Ed Burghard, executive director of the Ohio Business Development Coalition, said in a news release.

South Dakota was ranked No. 1 on the list, while New Jersey was ranked No. 50.

Indiana was No. 15, Kentucky was 22nd and Michigan was 23rd in the council’s ranking.

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