Posted on: Tuesday, July 30, 2002

State rated worst in nation

A national survey has ranked Hawai'i the worst state in the country for entrepreneurs, largely because of its high tax rates and other business costs.

The annual Small Business Survival Index, released yesterday by the Small Business Survival Committee in Washington, D.C., said Hawai'i ranks 50th out of 50 states in terms of its climate for small businesses and entrepreneurs, dropping one spot from its 49th-place ranking last year.

The most welcoming state for entrepreneurs, according to the index, is South Dakota, up one spot from a year ago.

Nevada, last year's No. 1, Wyoming, Texas and Florida rounded out the top five. California, New Mexico, Minnesota, Maine and Hawai'i were at the bottom.

The survey looked at such factors as taxes on personal income, capital gains, corporate income, property, sales, inheritance, unemployment, health insurance, Internet access, gas, the cost of electricity and workers' compensation, crime rates, right-to-work status and the state minimum wage.