According to a recent survey CT is dead last for small business.
Connecticut is the worst state when it comes to a friendly environment for small businesses. The Constitution State got an F for a second year in a row. This is the 5th year the survey was done. Back in 2012 Connecticut got a D.
“The state needs to immediately re-think it’s operation in respect to small business,” said Professor David Cadden with Quinnipiac University.
The survey was compiled by “Thumbtack”. People there interviewed entrepreneurs throughout the state. And here are some of the findings:
Only 23% of small business owners find zoning to be friendly. 68% of skilled professionals say state labor regulations are considered “unfriendly.”
When it comes to Connecticut’s tax code, 32% say it’s difficult. The survey also looked at training programs and licensing. Again, overall Connecticut got an F.
Bruce Ramirez is the owner of Café Java in New Haven. He moved to Connecticut two years ago from Texas, the state considered the friendliest for small businesses.
“There’s a lot more things that are being taxed,” said Ramirez. “There’s personal property tax, there’s a tax just because we have a hood. We have that kind of stuff that takes you by surprise if you’re not ready for it. There’s quite a bit of it.”
Connecticut was not alone when it came to a bad grade. Illinois, New York, California and Alabama are also at the bottom of the list. Experts say Connecticut’s failing grade needs to serve as a wake-up call.
“Small business is the driving force of job creation,” said Cadden. “If you increasingly make a hostile environment then you’re going to see an impact on job creation in the state and that’s one thing we don’t need to do.”
Here’s the survey.
This is backed up by the CT Business and Industry Survey.
The Connecticut Business and Industry Association and BlumShapiro released Friday their annual survey of businesses in Connecticut, showing state taxes and regulations are the biggest roadblocks to business growth and expansion.
The three biggest challenges to growth cited by the businesses surveyed were costs associated with state regulations, taxes and “unpredictability surrounding legislative decision making.”
Interestingly, two focal areas of the current political debates – transportation and broadband access – ranked as the bottom two barriers to business growth.
Decisions on whether to grow their operations in Connecticut or elsewhere were in a virtual tie with 47 percent of surveyed businesses said they will continue to invest in Connecticut while 46 percent said they were looking to set up operations elsewhere.
Zero respondents reported that they were trying to bring out-of-state operations back into Connecticut.
“Almost 40 percent of this year’s respondents plan on selling or transferring their business in the next 10 years,”Thomas A. DeVitto, Chief Marketing Officer at BlumShapiro, wrote in the survey report. “It’s imperative that we have a comprehensive strategy focused on keeping these businesses in our state. Creating a favorable tax and regulatory environment, retaining talent and developing a strong workforce with proper skills will need to be key elements.”
The survey is another in a long list of state and national surveys that have faulted Connecticut’s high tax and regulatory burden as a problem for the state’s fiscal health. Two major tax increases under Governor Dannel Malloy’s administration have resulted in massive deficits, leading to public employee layoffs and cuts to state services.
Compounding the effects of taxes and regulations is the outmigration of both residents and businesses. Of the businesses surveyed that were considering relocating out of state 45 percent cited the high cost of doing business followed by 19 percent who said there were better incentives elsewhere.
Well it’s not as if the firearms industry was important in the state, was it?
Connecticut’s record for economic stupidity is an old and long one. It goes back to the 1970’s and only the Reagan military build up and the fact that the state has a deep technical capital kept things going at all. Well much of the defense industry is gone and the technical capital is slowly slipping away in closed small businesses, companies leaving and the talent retiring and not being replaced. All of this was certain death to the state and for the last forty years, and each governor and legislature only made things worse with yet more taxes and regulation. Well now the end game of the story is in sight and frankly I can’t see a way out.