Score cards, metrics & what makes a successful entrepreneurial ecosystem.
Why don’t we tackle the really BIG issue facing the growth of our economy – government and taxes. Contrary to most ratings and beliefs of what makes a state a good place for start-ups and entrepreneurs is NOT low taxes and less government. The actual data, tells us that big government and high taxes must have some kind of value because the best states for start-ups have the highest taxes on personal and corporate taxes and the correlated big government. If we look at where venture capitalists invest and where there are the highest numbers of successful start-ups we can’t help but note that the startups with notable new jobs and wealth creation actually reside in big government states. Any real measure of economic growth from start-ups clearly indicates that the states making a mark are those with big government presence. To visualize this you can think about the Great Lakes states and picture Minneapolis, St.Paul, Rochester, Duluth and you are picturing the states with the highest taxes compared with its regional peers – Ohio, Wisconsin, Illinois, Indiana and Michigan. On a national level think about California, New York, Massachusetts vs. Mississippi or Alabama and you should get the picture. Just maybe, big government can work if it’s well managed and it serves it’s shareholders by delivering a great place to live (which is the number one determinant on where companies form) and a great labor pool because their schools are adequately funded to do the job. What’s your take?