Low Taxes Do Not A Good Business Environment Make

Recently, the Small Business and Entrepreneurship Council released its rating of the various states by what it measures as the best environment for small businesses and entrepreneurs.  http://money.cnn.com/2007/11/16/smbusiness/SBE_states_lists.fsb/index.htm  Small Business and Entrepreneurship Council’s Unfortunately the big criteria is low business taxes. 

The major criteria I would use is the mass of highly educated and trained people.  The critical mass of entrepreneurial thinking and the availability of high class talent is related to the people in a location not taxes.  As a matter of fact 2 of the states most successful in generating entrepreneurial businesses are listed in the 10 worst states in the council’s ratings; California and Massachusetts.  Only 2 of the best 10 have anything like the people in place to make the news business difference; Washington and Michigan.

 When it comes to gauging the success of a new or small business there is one overriding criteria; the people involved.  Ask any venture capitalist.  So, I’m not sure what this council is thinking about.  Which leads me to another peeve; lists of things that are supposed to make some kind of difference for something.  But, that’s for another time and another place.