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Business and Community Development Newsroom

Posted on: May 31, 2012

Kansas among top 10 easiest states for starting a small business, in partnership with the Kauffman Foundation, has released new data showing that small business owners ranked Kansas among the top 10 easiest states nationwide for starting a small business., a website that links freelancers and small businesses with people needing services, released its “Small Business Survey” that reviews data gathered from an extensive, nationwide group of small business owners, freelancers and entrepreneurs in order to rank the best places in the country to do business.

“We are grateful to and the Kauffman Foundation for this recognition,” said Kansas Commerce Secretary Pat George. “The Brownback Administration has worked hard to make Kansas a great state to start and operate a small business. With the recent enactment of comprehensive, pro-growth tax legislation, the business climate in Kansas will only get better, allowing small businesses to expand and create jobs.”

Part of the new law features a business income exemption that eliminates certain non-wage business income for small business owners – income reported by LLCs, Subchapter-S Corporations and sole proprietorships.

“After a two-month survey of over 6,000 small business owners nationwide, Kansas comes out on top as one of the nation's best states to start a small business,” said Sander Daniels, co-founder of “Kansas entrepreneurs are getting back on their feet after the recession, whether their state government is helping them or not.”

Some findings for Kansas include:
• Kansas earned an “A” grade and an “A-” grade in two categories where it achieved top rankings: No. 5 best publicized networking programs nationwide and No. 9 easiest state for starting a small business.
• Women-owned small businesses in Kansas felt significant support by the state. Female entrepreneurs were 28 percent more likely than male entrepreneurs to rate Kansas as “supportive” or “very supportive” of small business.
• Metro Kansas City is the state's stand-out region, receiving No. 1 rankings for four out of the 17 categories rated by small businesses. Small businesses rated eastern Kansas as being the state's No. 1 lowest-cost region for hiring a new employee.

Survey Methodology surveyed 6,022 small businesses across the United States. The survey asked questions about the friendliness of states towards small business and about small business finances, such as:

• “In general, how would you rate your state's support of small business owners?”
• “Would you discourage or encourage someone from starting a new business in your state?”
• “How would you rate your company's financial situation today?”

The full survey can be found at and includes the full set of rankings, quotes from Kansas small businesses, regional comparisons within states and Census date comparing Kansas’ key demographics against those of other states. and Kauffman ranked states and cities against one another along 15 metrics. The full methodology paper can be found at:

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