A new survey gives Connecticut an “F” and ranked the state dead last for its friendliness to small business in a variety of areas.
Connecticut’s failing grade in the fifth annual Thumbtack Small Business Friendliness Survey was driven by lagging grades for both licensing and training experience.
Connecticut flunked in seven categories: Overall friendliness; ease of starting a business; ease of hiring; regulations; health and safety; employment, labor and hiring; tax code and licensing.
Hartford earned a “C-” overall and ranked No. 57, outperforming New Haven and Bridgeport, which ranked No. 61 and No. 75 respectively.
Connecticut’s labor regulations drew an “F” from skilled professionals, who were 68 percent more likely to say that these rules were “unfriendly” than the national average. Zoning regulations were 13 percent more likely to be called “unfriendly” than in other states, earning the state a “D+” on this metric.
Entrepreneurs were especially critical of the state in complying with licensing and participating in local training opportunities. However, their perspective is different from other small business owners.
Connecticut got a “B” grade for its training and networking programs. More than half of businesses surveyed said there were helpful training programs in place with 21 percent praising the networking opportunities; 16 percent business development; and another 16 percent skills development.
The state also received a “C” for its licensing, with 54 percent of those surveyed finding compliance easy. Another 23 percent of those encumbered by regulations found compliance difficult. The remainder were neutral on the issue.
The state’s tax code was at the national average with 35 percent of business owners finding it easy to understand. That contrasted with the 32 percent who found it difficult. Overall, the state tax code received a “C+”.
Thumbtack economist Lucas Puente explained the discrepancy between the “C+” grade for the tax code and the “F” for tax code and licensing.
“On the website, the ‘Tax Code’ metric falls under the umbrella of regulations, as it is specifically referring to tax-based regulations and fees,’’ he said via email. “On this measure, Connecticut received an ‘F.’ For its tax rate and its tax complexity, two separate measures, the state received a ‘B’ and ‘C+,’ respectively.”
