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Jon Lieber &
Lucas Puente, PhD
2015 Thumbtack.com Small
Business Friendliness Survey:
Methodology & Analysis
Survey Overview
We polled over 17,000 small
businesses on Thumbtack about:
The level of support they receive from
their state and local governments.
Their beliefs about a variety of public
policy issues.
Information about their background and
business.
Grading Methodology
With this information, we assigned grades
to 36 states and 95 cities on 11 dimensions:
Overall small business
friendliness
Ease of starting a small
business
Ease of hiring a new
employee
Overall regulatory
friendliness
Availability of helpful
training or networking
programs
Friendliness of:
Health and safety
regulations
Employment,
labor, and hiring
regulations
Tax code
Licensing
regulations
Environmental
regulations
Zoning regulations
State Ratings: Overall Friendliness
Most and Least Friendly Cities and States
States Cities
Top Ten
Best-Ranked
1. Texas 1. Manchester, NH
2. New Hampshire 2. Dallas, TX
3. Utah 3. Richmond, VA
4. Louisiana 4. Austin, TX
5. Colorado 5. Knoxville, TN
6. Idaho 6. Nashville, TN
7. Tennessee 7. Houston, TX
8. Virginia 8. Fort Collins, CO
9. Georgia 9. Boulder, CO
10. Kansas 10. San Antonio, TX
Bottom Five
Worst-Ranked
1. Rhode Island 1. Hartford, CT
2. Illinois 2. Albuquerque, NM
3. Connecticut 3. Buffalo, NY
4. California 4. New Haven, CT
5. New York 5. Providence, RI
Research Questions
1. What do small businesses want
most from their state and local
governments?
2. How do different policy measures
affect perceptions about government
friendliness?
Analytical Methodology
1. Use dominance analyses to
determine which policies contribute
most to friendliness evaluations.
2. Use ordinal logistic regressions to
understand how improving policies
affects overall friendliness.
Most Important Policies For States’ Friendliness
Most Important Policies For Cities’ Friendliness
Effect of Training Opportunities on Friendliness
Effect of Government Websites on Friendliness
Effect of Licensing Compliance on Friendliness
Regulation & Overall Friendliness
The Effects of Regulatory Friendliness on Overall Friendliness:
Other Factors’ Effects on Friendliness
Conclusions
1. Government activity can help. 3 effective
ways to improve friendliness:
Offer helpful training programs.
Provide easy to use websites.
Facilitate licensing compliance.
2. Regulations affect overall friendliness
across the board.
3. Tax rates and complexity matter, but are
among the least important factors to
small businesses.
thumbtack.com/survey

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2015 Thumbtack.com Small Business Friendliness Survey

  • 1. Jon Lieber & Lucas Puente, PhD 2015 Thumbtack.com Small Business Friendliness Survey: Methodology & Analysis
  • 2. Survey Overview We polled over 17,000 small businesses on Thumbtack about: The level of support they receive from their state and local governments. Their beliefs about a variety of public policy issues. Information about their background and business.
  • 3. Grading Methodology With this information, we assigned grades to 36 states and 95 cities on 11 dimensions: Overall small business friendliness Ease of starting a small business Ease of hiring a new employee Overall regulatory friendliness Availability of helpful training or networking programs Friendliness of: Health and safety regulations Employment, labor, and hiring regulations Tax code Licensing regulations Environmental regulations Zoning regulations
  • 4. State Ratings: Overall Friendliness
  • 5. Most and Least Friendly Cities and States States Cities Top Ten Best-Ranked 1. Texas 1. Manchester, NH 2. New Hampshire 2. Dallas, TX 3. Utah 3. Richmond, VA 4. Louisiana 4. Austin, TX 5. Colorado 5. Knoxville, TN 6. Idaho 6. Nashville, TN 7. Tennessee 7. Houston, TX 8. Virginia 8. Fort Collins, CO 9. Georgia 9. Boulder, CO 10. Kansas 10. San Antonio, TX Bottom Five Worst-Ranked 1. Rhode Island 1. Hartford, CT 2. Illinois 2. Albuquerque, NM 3. Connecticut 3. Buffalo, NY 4. California 4. New Haven, CT 5. New York 5. Providence, RI
  • 6. Research Questions 1. What do small businesses want most from their state and local governments? 2. How do different policy measures affect perceptions about government friendliness?
  • 7. Analytical Methodology 1. Use dominance analyses to determine which policies contribute most to friendliness evaluations. 2. Use ordinal logistic regressions to understand how improving policies affects overall friendliness.
  • 8. Most Important Policies For States’ Friendliness
  • 9. Most Important Policies For Cities’ Friendliness
  • 10. Effect of Training Opportunities on Friendliness
  • 11. Effect of Government Websites on Friendliness
  • 12. Effect of Licensing Compliance on Friendliness
  • 13. Regulation & Overall Friendliness The Effects of Regulatory Friendliness on Overall Friendliness:
  • 14. Other Factors’ Effects on Friendliness
  • 15. Conclusions 1. Government activity can help. 3 effective ways to improve friendliness: Offer helpful training programs. Provide easy to use websites. Facilitate licensing compliance. 2. Regulations affect overall friendliness across the board. 3. Tax rates and complexity matter, but are among the least important factors to small businesses.