Corporate Law Reform - User-Friendliness and Corporate Governance
2014 THUMBTACK.COM SMALL BUSINESS FRIENDLINESS …
45
2014 THUMBTACK.COM SMALL BUSINESS FRIENDLINESS SURVEY: METHODOLOGY & ANALYSIS Conducted in partnership with the Kauffman Foundation Jon Lieber Chief Economist, Thumback.com [email protected] Sander Daniels Co-founder, Thumbtack.com [email protected] June 2014 With special thanks to Yasuyuki Motoyama, Alicia Robb and Dane Stangler at the Ewing Marion Kauffman Foundation for generously lending their support and expertise to this project.
Transcript of 2014 THUMBTACK.COM SMALL BUSINESS FRIENDLINESS …
Microsoft Word - thumbtack 2014 final methodology
paper.docxConducted in partnership with the Kauffman
Foundation
Jon Lieber Chief Economist, Thumback.com
[email protected]
June 2014
!
! The!data!were!collected!over!a!period!of!two!months.9!!A!link!asking!business!
We!also!compared!the!age!and!size!of!the!businesses!in!our!survey!with!those!of!the! general!business!population.!Both!revealed!that!the!Thumbtack!survey!sample!has!a! similar!distribution!to!the!American!small!business!community!in!terms!of!age!and!size! with!a!slight!bias!towards!younger!businesses!and!a!general!exclusion!of!the!largestCsize! businesses.!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 10!Census!Bureau!data!available!at!http://www.census.gov/econ/nonemployer/4and4http://www.census.gov/econ/susb/,4Accessed!on!13! Mar.!2014.!Most!recent!data!at!time!data!was!accessed!is!2011.4 11!The!response!levels!of!California!and!New!York!in!this!year’s!survey!were!2.3!percentage!points!higher!and!2.1!percentage!points! lower!than!Census!numbers,!respectively.!This!pattern!is!consistent!with!previous!Small!Business!Friendliness!surveys.!
Business Owner Characteristic Nationwide Our Sample Asian- owned firms 6% 2% Black- owned firms 7% 10%
Hispanic- owned firms 8% 9% Other 1% 6%
Non- Hispanic white 78% 73% Women- owned firms 36% 40%
High school education or less 28% 15% Some college 33% 33%
Bachelor’s or higher 39% 52% Source: http://quickfacts.census.gov/qfd/states/00000.html ΨΨΨΨΨ
!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 12!NonCemployer!statistics!found!here:!http://censtats.census.gov/cgiCbin/nonemployer/nonsect.pl,!accessed!5/27/14! 13!All!data!on!employment!size!of!U.S.!businesses!comes!from!the!Statistics!of!U.S.!Businesses!program!run!by!the!U.S.!Census!bureau,! http://www.sba.gov/advocacy/849/12162#susb!and!http://www.sba.gov/sites/default/files/static_us_11_0.xlsx,!accessed!4/14/14.!
Firm Age National Average Thumbtack Sample Less than 1 year 8% 14%
1-2 years 11% 16% 3-4 years 10% 18%
5 or more years 70% 52% Source: The Census Bureau’s Business Dynamics Statistics as compiled the Small Business Administration.
Available at http://www.sba.gov/advocacy/849/12162#bds, accessed 4-3-2014
!
To!grade!each!of!the!cities!and!states!in!our!survey,!we!converted!the!responses!we! received!into!numerical!scores!for!each!question!and!averaged!those!scores!in!each! category!to!create!a!numerical!score!for!each!city!or!state.!Cities!and!states!were!then! ranked!across!each!category!based!on!this!average!score,!and!then!assigned!a!letter!grade! of!A+!through!F!depending!on!its!rank!in!that!category.!! !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 25!Although!these!effects!were!large!and!statistically!significant,!there!were!a!large!number!of!nonCresponses!to!this!question,!so!results! in!Appendix!D!are!presented!in!two!tables!–!Table!2!includes!a!dummy!variable!for!training!programs!but!has!a!smaller!sample!size.! Table!1!does!not!include!the!variable!and!has!a!much!larger!sample!size.!!
Corporate Form (sample size) I pay an unfairly high level of taxes S-Corporation (981) 46% C-Corporation (285) 43%
Partnership (LP, LLP, GP) (186) 40% Limited Liability Company (LLC) (3055) 38%
Unincorporated or Sole Proprietorship (5227) 32% Total (9734) 36%
!
!
!
Appendix(A:(Thumbtack(Business(Friendliness(Survey( ! 2014 Thumbtack Business Friendliness Survey Thanks for participating in the Thumbtack Business Friendliness Survey! This survey should take 5-8 minutes to complete. This survey was developed in partnership between Thumbtack and the Ewing Marion Kauffman Foundation and seeks to provide insight into the friendliness of state and local governments towards small businesses. The results of this survey will be used by Thumbtack and the Kauffman Foundation to provide policymakers and researchers with valuable information on how small businesses feel about their state and local governments. Individual responses to the survey will not be released outside of Thumbtack and the Kauffman Foundation, and all publicly released analysis of the survey's results will reflect only aggregate results. Thanks again.
1. In which state do you primarily operate your business? [DROP-DOWN LIST OF STATES]
2. Which of the following best describes your business? “90 percent of my sales are made to customers…”
Within 10 miles of my company’s primary location Within 25 miles of my company’s primary location Within 50 miles of my company’s primary location Within 100 miles of my company’s primary location More than 100 miles from my company’s primary location
3. In general, how would you rate your state government’s support of small business owners?
Very supportive Somewhat supportive Neither supportive nor unsupportive Somewhat unsupportive Very unsupportive
!
!
4. In general, how would you rate your local (county, city or town) government’s support of small business owners?
Very supportive Somewhat supportive Neither supportive nor unsupportive Somewhat unsupportive Very unsupportive
5. Would you discourage or encourage someone from starting a new business where you
live? Highly encourage Somewhat encourage Neither encourage nor discourage Somewhat discourage Highly discourage
6. How difficult or easy do you think it is to start a business in where you live?
Very easy Somewhat easy Neither easy nor difficult Somewhat difficult Very difficult
7. How difficult or easy is it to obtain and keep health insurance at your business?
Very easy Somewhat easy Neither easy nor difficult Somewhat difficult Very difficult
8. How difficult or easy is it to hire a new employee at your business?
!
Very difficult Does not apply to my business
9. How unfriendly or friendly is your state or local government with regard to the following types of regulations:
Very friendly
Somewhat friendly
Health and safety regulations 1 2 3 4 5 6
Employment, labor and hiring regulations 1 2 3 4 5 6
Tax code and tax-related regulations 1 2 3 4 5 6
Licensing forms, requirements and fees 1 2 3 4 5 6
Environmental regulations 1 2 3 4 5 6
Zoning or land use regulations 1 2 3 4 5 6
10. Does your profession require that you have a license, certification, or permit to do your
job? Yes No
10a. How difficult or easy is it to comply with the licensing, certification, or permitting
requirements of your profession? Very easy Somewhat easy
!
Neither easy nor difficult Somewhat difficult Very difficult
10.b. Which of the following types of agencies require that you have a license, certification,
or permit to do your job?
None One More than One
City, town, or other municipal agency 1 2 3
County agency 1 2 3
State agency 1 2 3
Federal agency 1 2 3
10c. How poorly or well enforced are the licensing, certification, or permitting requirements
of your profession? Very well enforced Somewhat well enforced Neither well enforced nor poorly enforced Somewhat poorly enforced Very poorly enforced
11. How difficult or easy is it to understand and file your business’s taxes?
!
!
I pay an unfairly high level of taxes I pay the right share of taxes I pay an unfairly low level of taxes
13. Does your state or local government offer helpful training or networking programs for
small business owners? Yes No I don’t know
14. Have you used a state or local government website to comply with regulations on your business (examples: starting your business, filing taxes, getting a license or permit, etc)?
Yes No
14a. How difficult or easy was it to use the website?
Very easy Somewhat easy Neither easy nor difficult Somewhat difficult Very difficult
15. How unprepared or prepared to you feel like your business is for the implementation of
the Patient Protection and Affordable Care Act (“Obamacare”)? Very prepared Somewhat prepared Neither prepared nor unprepared Somewhat unprepared Very unprepared I don’t know
16. Please let us know any experiences or thoughts you have regarding the ease of doing business where you live.
[BOX FOR COMMENTS] 16a. Would you be willing to be quoted in the press about your views on small business
where you live?
!
[YES/NO DROPDOWN MENU] 17. Over the past 12 months, did your company’s revenues:
Increase a lot Increase a little Stay the same Decrease a little Decrease a lot
18. How do you expect the number of employees at your company to change in the next 12
months? Increase a lot Increase a little Stay the same Decrease a little Decrease a lot
19. How would you rate the situation of the national economy over the past 12 months?
Very good Somewhat good Neither good nor bad Somewhat bad Very bad
20. How would you rate the situation of your state economy in comparison to the national
economy? Substantially better A little better The same A little worse Substantially worse
21. Thinking specifically about the economy, what issue should be the top priority of your state or local government? Dropdown menu options:
• Budget deficit/spending • Financial and banking system
!
• Gas/fuel prices • Health care costs • Home values and the housing market • Inflation/rising prices • Personal debt • Social Security • Student loans • Taxes • Unemployment and the job market • Other • No opinion
22. Thinking specifically about the economy, what issue should be the top priority of the federal government? (dropdown menu options same as above) 23. How long has your business been operating?
Less than 1 year 1-2 years 3-4 years 5 or more years
24. How many people does your business employ?
1 – I work alone at my business 2-5 6-10 11-20 21-50 51-100 101 or more
25. What type of company is your business?
Unincorporated or sole proprietorship Limited liability company (LLC) Partnership (LP, LLP, GP) S-corporation C-corporation I don’t know
!
26. Which best describes your position in your business?
Owner and manager Owner but not manager Manager but not owner Non-manager employee
27. Have you ever been an entrepreneur prior to your current company?
Yes No
27a. How many companies other than your current company have you previously started?
1 2 3 4 5
28. Is this business your primary employment, or is it a side job?
Primary employment Side job, hobby, or secondary income
29. What is your gender?
Female Male
Under 25 25-34 35-44 45-54 55-64 65 or above
31. What is your political preference?
!
Strong conservative Lean conservative Independent Lean liberal/progressive Strong liberal/progressive Other
32. What is the highest level of education you have reached?
No high school High school Community college Technical college Undergraduate degree Master’s degree Doctoral degree
33. What is your race or origin?
!
!
Friendliness! Rank/! Grade! !
Zoning! Rank/! Grade!
Training!&! Networking! Rank/Grade!
!
!
!
Ease!of! hiring! Rank/! Grade!
Health!&! Safety! Rank/! Grade!
Tax!code! Rank/! Grade!
Licensing! Rank/! Grade!
Training!&! Networking! Rank/! Grade!
!
!
!
!
!
! ! Table!2!–!Political!affiliation!and!taxes! ! Political!affiliation/taxes!
! I!pay!an!unfairly! high!level!of!taxes!
I!pay!an!unfairly! low!level!of!taxes!
I!pay!the!right! share!of!taxes!
Grand! Total!
250!(25%! 22!(2.3%)! 694!(71%)! 966!
! I!pay!an!unfairly! high!level!of!taxes!
I!pay!an!unfairly! low!level!of!taxes!
I!pay!the!right! share!of!taxes!
Grand! Total!
1!Q!I!work!alone!at!my! business!
1865!(31%)! 59!(1%)! 4063!(68%)! 5987!
!
Partnership!(LP,!LLP,! GP)!
I!pay!an!unfairly! high!level!of! taxes!
I!pay!an! unfairly!low! level!of!taxes!
I!pay!the! right!share! of!taxes!
Neither!supportive! nor!unsupportive!
Grand!Total! 100%! 100%! 100%! 100%! ! ! Table!6:!Responses!to!questions:!“Does!your!state!or!local!government!offer!helpful!training!or! networking!programs!for!small!business!owners?”!and!“In!general,!how!would!you!rate!your!local! (county,!city,!or!town)!government’s!support!of!small!business!owners?”! ! Local!government!is…! Yes! No! I!don't!know! No!response! Total! Supportive! 2360!(76%)! 892!(39%)! 2823!(51%)! 866!(53%)! 6941!(55%)!
! ! !
!
Neither! 2016!(29%)! 1500!(38%)! 637!(37%)! 4153!(33%)! Unsupportive! 1345!(19%)! 711!(18%)! 279!(16%)! 2335!(19%)!
Total! 6959!(100%)! 3943!(100%)! 1700!(100%)! 12602!(100%)!
! ! Table!9!and!10:!Responses!to!questions:!“How!difficult!or!easy!was!it!to!use!the!website(s)?”!(asked!of! respondents!who!said!they!had!used!a!state!or!local!government!website!to!fill!out!forms)!and!“In! general,!how!would!you!rate!your!state/local!(county,!city,!or!town)!government’s!support!of!small! business!owners?”! Local!government!is…! Easy! Difficult! Neither! Total! Supportive! 2759!(68%)! 514!(39%)! 701!(48%)! 3974!(58%)! Unsupportive! 389!(10%)! 377!(28%)! 275!(19%)! 1041!(15%)! Neither! 927!(23%)! 440!(33%)! 496!(34%)! 1863!(27%)! Total! 4075!(100%)! 1331!(100%)! 1472!(100%)! 6878!(100%)! ! State!government!is…! Easy! Difficult! Neither! Total! Supportive! 2541%(62%)! 446%(33%)! 584%(40%)! 3571%(52%)! Unsupportive! 512%(13%)! 472%(35%)! 347%(24%)! 1331%(19%)! Neither! 1036%(25%)! 420%(31%)! 545%(37%)! 2001%(29%)! Total! 4089%(100%)! 1338%(100%)! 1476%(100%)! 6903! ! ! !
!
! ! Appendix!D! ! Table 1: Overall – state friendliness on regulations, economic conditions, demographics Regression Statistics R 0.62
R Square 0.385 Adjusted R Square 0.384 S 0.684 Total number of observations 6633
ANOVA d.f. SS MS F p-level
Regression 13. 1,938.174 149.09 318.551 0.E+0 Residual 6,619. 3,097.872 0.468
Total 6,632. 5,036.046
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected? Intercept 1.275 0.052 1.172 1.378 24.338 0.E+0 Yes
Environmental regulations -0.019 0.014 -0.047 0.01 -1.291 0.197 No Health and safety regulations 0.041 0.014 0.013 0.069 2.877 0.004 Yes
Employment, labor and hiring regulations 0.102 0.015 0.073 0.131 6.876 6.739E-12 Yes Tax code and tax-related regulations 0.072 0.014 0.046 0.099 5.337 0. Yes
Licensing forms, requirements and fees 0.132 0.012 0.109 0.155 11.318 0.E+0 Yes Zoning or land use regulations 0.051 0.013 0.025 0.077 3.851 0. Yes
Revenue change 0.056 0.008 0.041 0.072 7.163 8.779E-13 Yes State economy 0.156 0.009 0.139 0.173 17.978 0.E+0 Yes License dummy -0.102 0.017 -0.135 -0.068 -5.974 0. Yes Website dummy 0.074 0.018 0.038 0.109 4.082 0. Yes
Ease of filing taxes 0.122 0.008 0.106 0.138 15.09 0.E+0 Yes Black or African American 0.226 0.028 0.172 0.281 8.141 4.441E-16 Yes
!
! Table 2: Overall – state friendliness on regulations, economic conditions, demographics, w/ training Regression Statistics R 0.682
R Square 0.465 Adjusted R Square 0.463 S 0.674 Total number of observations 3514
ANOVA d.f. SS MS F p-level
Regression 14. 1,381.106 98.65 217.433 0.E+0 Residual 3,499. 1,587.515 0.454
Total 3,513. 2,968.621
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected? Intercept 1.307 0.071 1.167 1.447 18.328 0.E+0 Yes
Environmental regulations -0.037 0.019 -0.074 0. -1.939 0.053 No Health and safety regulations 0.056 0.019 0.019 0.092 2.99 0.003 Yes
Employment, labor and hiring regulations 0.083 0.019 0.045 0.121 4.27 0. Yes Tax code and tax-related regulations 0.034 0.018 -0.002 0.069 1.861 0.063 No
Licensing forms, requirements and fees 0.133 0.016 0.102 0.163 8.43 0.E+0 Yes Zoning or land use regulations 0.068 0.017 0.034 0.101 3.944 0. Yes
Revenue change 0.053 0.011 0.032 0.074 4.962 0. Yes State economy 0.148 0.012 0.125 0.17 12.812 0.E+0 Yes License dummy -0.086 0.023 -0.132 -0.041 -3.737 0. Yes Website dummy 0.04 0.026 -0.01 0.09 1.572 0.116 No
Ease of filing taxes 0.113 0.011 0.092 0.135 10.196 0.E+0 Yes Black or African American 0.23 0.036 0.159 0.3 6.402 0. Yes
How long has your business been operating? -0.038 0.011 -0.059 -0.017 -3.518 0. Yes Training dummy 0.388 0.025 0.339 0.438 15.355 0.E+0 Yes
T (5%) 1.961 LCL - Lower value of a reliable interval (LCL)
UCL - Upper value of a reliable interval (UCL) !
!
!
! Table 3: Licensed pros only – overall state friendliness on regulations, economic conditions, demographics, licensing Regression Statistics R 0.627
R Square 0.393 Adjusted R Square 0.391 S 0.691 Total number of observations 3464
ANOVA d.f. SS MS F p-level
Regression 14. 1,067.567 76.255 159.57 0.E+0 Residual 3,449. 1,648.198 0.478
Total 3,463. 2,715.765
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected? Intercept 0.924 0.081 0.765 1.083 11.402 0.E+0 Yes
Environmental regulations -0.011 0.019 -0.049 0.027 -0.556 0.578 No Health and safety regulations 0.017 0.019 -0.021 0.055 0.88 0.379 No
Employment, labor and hiring regulations 0.118 0.02 0.079 0.157 5.958 0. Yes Tax code and tax-related regulations 0.07 0.019 0.032 0.107 3.665 0. Yes
Licensing forms, requirements and fees 0.118 0.016 0.087 0.149 7.46 1.091E-13 Yes Zoning or land use regulations 0.041 0.018 0.006 0.076 2.268 0.023 Yes
Revenue change 0.064 0.011 0.042 0.085 5.835 0. Yes State economy 0.139 0.012 0.115 0.163 11.432 0.E+0 Yes
Website dummy 0.072 0.026 0.02 0.123 2.732 0.006 Yes Ease of filing taxes 0.094 0.012 0.071 0.117 7.985 1.887E-15 Yes
Black or African American 0.227 0.038 0.153 0.302 5.963 0. Yes How long has your business been operating? -0.015 0.011 -0.037 0.007 -1.346 0.178 No
Ease of licensing compliance 0.077 0.012 0.054 0.1 6.572 5.721E-11 Yes Licensing enforcement 0.036 0.011 0.014 0.058 3.242 0.001 Yes
T (5%) 1.961 !!
!
! Table 4: Licensed pros only - overall local score on regulations, economic conditions, demographics, licensing Regression Statistics R 0.609
R Square 0.37 Adjusted R Square 0.368 S 0.702 Total number of observations 3464 ANOVA
d.f. SS MS F p-level Regression 14. 1,000.387 71.456 144.87 0.E+0
Residual 3,449. 1,701.192 0.493 Total 3,463. 2,701.578
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected?
Intercept 1.041 0.082 0.88 1.203 12.645 0.E+0 Yes Environmental regulations -0.019 0.02 -0.057 0.02 -0.941 0.347 No
Health and safety regulations 0.031 0.02 -0.008 0.069 1.572 0.116 No Employment, labor and hiring regulations 0.093 0.02 0.054 0.133 4.623 0. Yes
Tax code and tax-related regulations 0.065 0.019 0.027 0.103 3.37 0.001 Yes Licensing forms, requirements and fees 0.122 0.016 0.091 0.154 7.578 4.485E-14 Yes
Zoning or land use regulations 0.049 0.018 0.013 0.085 2.687 0.007 Yes Revenue change 0.071 0.011 0.049 0.093 6.381 0. Yes State economy 0.117 0.012 0.093 0.141 9.473 0.E+0 Yes
Website dummy 0.087 0.027 0.035 0.139 3.263 0.001 Yes Ease of filing taxes 0.086 0.012 0.062 0.109 7.179 8.586E-13 Yes
Black or African American 0.211 0.039 0.135 0.287 5.446 0. Yes How long has your business been operating? -0.015 0.011 -0.037 0.008 -1.285 0.199 No
!! !
!
! ! Table 5: Website users – state friendliness score on regulations, economic conditions, demographics, ease of website usage Regression Statistics R 0.649
R Square 0.422 Adjusted R Square 0.42 S 0.675 Total number of observations 4369
ANOVA d.f. SS MS F p-level
Regression 13. 1,445.365 111.182 244.22 0.E+0 Residual 4,355. 1,982.627 0.455
Total 4,368. 3,427.992
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected? Intercept 1.184 0.066 1.054 1.313 17.974 0.E+0 Yes
Environmental regulations -0.023 0.017 -0.057 0.01 -1.356 0.175 No Health and safety regulations 0.015 0.017 -0.019 0.049 0.866 0.386 No
Employment, labor and hiring regulations 0.116 0.018 0.081 0.151 6.567 5.749E-11 Yes Tax code and tax-related regulations 0.061 0.016 0.029 0.093 3.72 0. Yes
Licensing forms, requirements and fees 0.135 0.014 0.107 0.162 9.711 0.E+0 Yes Zoning or land use regulations 0.062 0.016 0.031 0.093 3.952 0. Yes
Revenue change 0.058 0.009 0.039 0.076 6.093 0. Yes State economy 0.15 0.011 0.129 0.17 14.197 0.E+0 Yes License dummy -0.106 0.021 -0.146 -0.065 -5.102 0. Yes
Ease of filing taxes 0.087 0.01 0.066 0.107 8.388 1.11E-16 Yes Black or African American 0.203 0.034 0.137 0.27 6.018 0. Yes
! ! !
!
Regression Statistics R 0.155
R Square 0.024 Adjusted R Square 0.023 S 1.034 Total number of observations 12565
ANOVA d.f. SS MS F p-level
Regression 5. 328.664 65.733 61.455 0.E+0 Residual 12,559. 13,433.272 1.07
Total 12,564. 13,761.935
Coefficients Standard Error LCL UCL t Stat p-level H0 (2%) rejected? Intercept 3.741 0.022 3.689 3.792 169.037 0.E+0 Yes
Asian 0.023 0.071 -0.143 0.189 0.324 0.746 No White (Caucasian) -0.039 0.025 -0.097 0.02 -1.54 0.124 No
Hispanic, Latino, or Spanish 0.183 0.04 0.09 0.277 4.544 0. Yes Other 0.13 0.048 0.019 0.24 2.728 0.006 Yes
!
Table 7: California – overall state friendliness on regulations, economic conditions, website, and taxes Regression Statistics R 0.654
R Square 0.427 Adjusted R Square 0.421 S 0.704 Total number of observations 985
ANOVA d.f. SS MS F p-level
Regression 11. 359.544 32.686 65.934 0.E+0 Residual 973. 482.354 0.496
Total 984. 841.897
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected? Intercept 1.003 0.11 0.788 1.218 9.146 0.E+0 Yes
Environmental regulations 0.006 0.037 -0.067 0.078 0.158 0.875 No Health and safety regulations 0.062 0.038 -0.012 0.137 1.648 0.1 No
Employment, labor and hiring regulations 0.119 0.04 0.04 0.197 2.977 0.003 Yes Tax code and tax-related regulations 0.122 0.037 0.05 0.194 3.308 0.001 Yes
Licensing forms, requirements and fees 0.114 0.03 0.054 0.173 3.736 0. Yes Zoning or land use regulations 0.014 0.036 -0.057 0.086 0.394 0.694 No
Revenue change 0.025 0.021 -0.015 0.066 1.238 0.216 No State economy 0.14 0.022 0.096 0.184 6.271 0. Yes License dummy -0.127 0.047 -0.22 -0.035 -2.694 0.007 Yes Website dummy 0.1 0.047 0.008 0.192 2.137 0.033 Yes
!
Table 8: Texas – overall state friendliness on regulations, economic conditions, website, and taxes Regression Statistics R 0.573
R Square 0.328 Adjusted R Square 0.316 S 0.648 Total number of observations 602
ANOVA d.f. SS MS F p-level
Regression 11. 121.179 11.016 26.203 0.E+0 Residual 590. 248.045 0.42
Total 601. 369.224
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected? Intercept 1.49 0.162 1.171 1.809 9.178 0.E+0 Yes
Environmental regulations -0.033 0.053 -0.138 0.071 -0.625 0.532 No Health and safety regulations 0.006 0.046 -0.085 0.097 0.12 0.904 No
Employment, labor and hiring regulations 0.062 0.045 -0.026 0.15 1.385 0.167 No Tax code and tax-related regulations -0.03 0.041 -0.109 0.05 -0.731 0.465 No
Licensing forms, requirements and fees 0.165 0.037 0.092 0.239 4.426 0. Yes Zoning or land use regulations 0.136 0.047 0.043 0.228 2.882 0.004 Yes
Revenue change 0.092 0.025 0.043 0.142 3.664 0. Yes State economy 0.169 0.03 0.111 0.227 5.713 0. Yes License dummy -0.127 0.055 -0.235 -0.019 -2.303 0.022 Yes Website dummy 0.081 0.059 -0.034 0.196 1.377 0.169 No
!
Table 9: New York – overall state friendliness on regulations, economic conditions, website, and taxes Regression Statistics R 0.592
R Square 0.35 Adjusted R Square 0.326 S 0.725 Total number of observations 305
ANOVA d.f. SS MS F p-level
Regression 11. 82.863 7.533 14.339 0.E+0 Residual 293. 153.93 0.525
Total 304. 236.793
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected? Intercept 1.213 0.223 0.775 1.652 5.449 0. Yes
Environmental regulations -0.064 0.086 -0.234 0.106 -0.74 0.46 No Health and safety regulations 0.189 0.074 0.044 0.334 2.564 0.011 Yes
Employment, labor and hiring regulations 0.015 0.074 -0.13 0.16 0.205 0.838 No Tax code and tax-related regulations 0.104 0.064 -0.022 0.23 1.627 0.105 No
Licensing forms, requirements and fees 0.125 0.062 0.003 0.246 2.025 0.044 Yes Zoning or land use regulations 0.018 0.076 -0.131 0.166 0.233 0.816 No
Revenue change 0.007 0.04 -0.072 0.085 0.164 0.87 No State economy 0.104 0.047 0.012 0.195 2.222 0.027 Yes License dummy 0.032 0.085 -0.135 0.199 0.377 0.706 No Website dummy 0.181 0.087 0.01 0.353 2.081 0.038 Yes
!
Table 10: Florida – overall state friendliness on regulations, economic conditions, website, and taxes Regression Statistics R 0.56
R Square 0.314 Adjusted R Square 0.302 S 0.712 Total number of observations 650
ANOVA d.f. SS MS F p-level
Regression 11. 147.886 13.444 26.504 0.E+0 Residual 638. 323.624 0.507
Total 649. 471.51
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected? Intercept 1.331 0.159 1.018 1.643 8.366 3.331E-16 Yes
Environmental regulations 0.033 0.048 -0.062 0.128 0.684 0.494 No Health and safety regulations -0.021 0.046 -0.112 0.07 -0.455 0.649 No
Employment, labor and hiring regulations 0.072 0.051 -0.028 0.171 1.417 0.157 No Tax code and tax-related regulations 0.093 0.051 -0.006 0.193 1.841 0.066 No
Licensing forms, requirements and fees 0.106 0.041 0.026 0.186 2.61 0.009 Yes Zoning or land use regulations 0.066 0.044 -0.02 0.152 1.499 0.134 No
Revenue change 0.067 0.027 0.015 0.119 2.542 0.011 Yes State economy 0.161 0.032 0.099 0.223 5.1 0. Yes License dummy -0.15 0.06 -0.267 -0.033 -2.524 0.012 Yes Website dummy 0.158 0.063 0.035 0.282 2.519 0.012 Yes
!
Jon Lieber Chief Economist, Thumback.com
[email protected]
June 2014
!
! The!data!were!collected!over!a!period!of!two!months.9!!A!link!asking!business!
We!also!compared!the!age!and!size!of!the!businesses!in!our!survey!with!those!of!the! general!business!population.!Both!revealed!that!the!Thumbtack!survey!sample!has!a! similar!distribution!to!the!American!small!business!community!in!terms!of!age!and!size! with!a!slight!bias!towards!younger!businesses!and!a!general!exclusion!of!the!largestCsize! businesses.!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 10!Census!Bureau!data!available!at!http://www.census.gov/econ/nonemployer/4and4http://www.census.gov/econ/susb/,4Accessed!on!13! Mar.!2014.!Most!recent!data!at!time!data!was!accessed!is!2011.4 11!The!response!levels!of!California!and!New!York!in!this!year’s!survey!were!2.3!percentage!points!higher!and!2.1!percentage!points! lower!than!Census!numbers,!respectively.!This!pattern!is!consistent!with!previous!Small!Business!Friendliness!surveys.!
Business Owner Characteristic Nationwide Our Sample Asian- owned firms 6% 2% Black- owned firms 7% 10%
Hispanic- owned firms 8% 9% Other 1% 6%
Non- Hispanic white 78% 73% Women- owned firms 36% 40%
High school education or less 28% 15% Some college 33% 33%
Bachelor’s or higher 39% 52% Source: http://quickfacts.census.gov/qfd/states/00000.html ΨΨΨΨΨ
!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 12!NonCemployer!statistics!found!here:!http://censtats.census.gov/cgiCbin/nonemployer/nonsect.pl,!accessed!5/27/14! 13!All!data!on!employment!size!of!U.S.!businesses!comes!from!the!Statistics!of!U.S.!Businesses!program!run!by!the!U.S.!Census!bureau,! http://www.sba.gov/advocacy/849/12162#susb!and!http://www.sba.gov/sites/default/files/static_us_11_0.xlsx,!accessed!4/14/14.!
Firm Age National Average Thumbtack Sample Less than 1 year 8% 14%
1-2 years 11% 16% 3-4 years 10% 18%
5 or more years 70% 52% Source: The Census Bureau’s Business Dynamics Statistics as compiled the Small Business Administration.
Available at http://www.sba.gov/advocacy/849/12162#bds, accessed 4-3-2014
!
To!grade!each!of!the!cities!and!states!in!our!survey,!we!converted!the!responses!we! received!into!numerical!scores!for!each!question!and!averaged!those!scores!in!each! category!to!create!a!numerical!score!for!each!city!or!state.!Cities!and!states!were!then! ranked!across!each!category!based!on!this!average!score,!and!then!assigned!a!letter!grade! of!A+!through!F!depending!on!its!rank!in!that!category.!! !
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 25!Although!these!effects!were!large!and!statistically!significant,!there!were!a!large!number!of!nonCresponses!to!this!question,!so!results! in!Appendix!D!are!presented!in!two!tables!–!Table!2!includes!a!dummy!variable!for!training!programs!but!has!a!smaller!sample!size.! Table!1!does!not!include!the!variable!and!has!a!much!larger!sample!size.!!
Corporate Form (sample size) I pay an unfairly high level of taxes S-Corporation (981) 46% C-Corporation (285) 43%
Partnership (LP, LLP, GP) (186) 40% Limited Liability Company (LLC) (3055) 38%
Unincorporated or Sole Proprietorship (5227) 32% Total (9734) 36%
!
!
!
Appendix(A:(Thumbtack(Business(Friendliness(Survey( ! 2014 Thumbtack Business Friendliness Survey Thanks for participating in the Thumbtack Business Friendliness Survey! This survey should take 5-8 minutes to complete. This survey was developed in partnership between Thumbtack and the Ewing Marion Kauffman Foundation and seeks to provide insight into the friendliness of state and local governments towards small businesses. The results of this survey will be used by Thumbtack and the Kauffman Foundation to provide policymakers and researchers with valuable information on how small businesses feel about their state and local governments. Individual responses to the survey will not be released outside of Thumbtack and the Kauffman Foundation, and all publicly released analysis of the survey's results will reflect only aggregate results. Thanks again.
1. In which state do you primarily operate your business? [DROP-DOWN LIST OF STATES]
2. Which of the following best describes your business? “90 percent of my sales are made to customers…”
Within 10 miles of my company’s primary location Within 25 miles of my company’s primary location Within 50 miles of my company’s primary location Within 100 miles of my company’s primary location More than 100 miles from my company’s primary location
3. In general, how would you rate your state government’s support of small business owners?
Very supportive Somewhat supportive Neither supportive nor unsupportive Somewhat unsupportive Very unsupportive
!
!
4. In general, how would you rate your local (county, city or town) government’s support of small business owners?
Very supportive Somewhat supportive Neither supportive nor unsupportive Somewhat unsupportive Very unsupportive
5. Would you discourage or encourage someone from starting a new business where you
live? Highly encourage Somewhat encourage Neither encourage nor discourage Somewhat discourage Highly discourage
6. How difficult or easy do you think it is to start a business in where you live?
Very easy Somewhat easy Neither easy nor difficult Somewhat difficult Very difficult
7. How difficult or easy is it to obtain and keep health insurance at your business?
Very easy Somewhat easy Neither easy nor difficult Somewhat difficult Very difficult
8. How difficult or easy is it to hire a new employee at your business?
!
Very difficult Does not apply to my business
9. How unfriendly or friendly is your state or local government with regard to the following types of regulations:
Very friendly
Somewhat friendly
Health and safety regulations 1 2 3 4 5 6
Employment, labor and hiring regulations 1 2 3 4 5 6
Tax code and tax-related regulations 1 2 3 4 5 6
Licensing forms, requirements and fees 1 2 3 4 5 6
Environmental regulations 1 2 3 4 5 6
Zoning or land use regulations 1 2 3 4 5 6
10. Does your profession require that you have a license, certification, or permit to do your
job? Yes No
10a. How difficult or easy is it to comply with the licensing, certification, or permitting
requirements of your profession? Very easy Somewhat easy
!
Neither easy nor difficult Somewhat difficult Very difficult
10.b. Which of the following types of agencies require that you have a license, certification,
or permit to do your job?
None One More than One
City, town, or other municipal agency 1 2 3
County agency 1 2 3
State agency 1 2 3
Federal agency 1 2 3
10c. How poorly or well enforced are the licensing, certification, or permitting requirements
of your profession? Very well enforced Somewhat well enforced Neither well enforced nor poorly enforced Somewhat poorly enforced Very poorly enforced
11. How difficult or easy is it to understand and file your business’s taxes?
!
!
I pay an unfairly high level of taxes I pay the right share of taxes I pay an unfairly low level of taxes
13. Does your state or local government offer helpful training or networking programs for
small business owners? Yes No I don’t know
14. Have you used a state or local government website to comply with regulations on your business (examples: starting your business, filing taxes, getting a license or permit, etc)?
Yes No
14a. How difficult or easy was it to use the website?
Very easy Somewhat easy Neither easy nor difficult Somewhat difficult Very difficult
15. How unprepared or prepared to you feel like your business is for the implementation of
the Patient Protection and Affordable Care Act (“Obamacare”)? Very prepared Somewhat prepared Neither prepared nor unprepared Somewhat unprepared Very unprepared I don’t know
16. Please let us know any experiences or thoughts you have regarding the ease of doing business where you live.
[BOX FOR COMMENTS] 16a. Would you be willing to be quoted in the press about your views on small business
where you live?
!
[YES/NO DROPDOWN MENU] 17. Over the past 12 months, did your company’s revenues:
Increase a lot Increase a little Stay the same Decrease a little Decrease a lot
18. How do you expect the number of employees at your company to change in the next 12
months? Increase a lot Increase a little Stay the same Decrease a little Decrease a lot
19. How would you rate the situation of the national economy over the past 12 months?
Very good Somewhat good Neither good nor bad Somewhat bad Very bad
20. How would you rate the situation of your state economy in comparison to the national
economy? Substantially better A little better The same A little worse Substantially worse
21. Thinking specifically about the economy, what issue should be the top priority of your state or local government? Dropdown menu options:
• Budget deficit/spending • Financial and banking system
!
• Gas/fuel prices • Health care costs • Home values and the housing market • Inflation/rising prices • Personal debt • Social Security • Student loans • Taxes • Unemployment and the job market • Other • No opinion
22. Thinking specifically about the economy, what issue should be the top priority of the federal government? (dropdown menu options same as above) 23. How long has your business been operating?
Less than 1 year 1-2 years 3-4 years 5 or more years
24. How many people does your business employ?
1 – I work alone at my business 2-5 6-10 11-20 21-50 51-100 101 or more
25. What type of company is your business?
Unincorporated or sole proprietorship Limited liability company (LLC) Partnership (LP, LLP, GP) S-corporation C-corporation I don’t know
!
26. Which best describes your position in your business?
Owner and manager Owner but not manager Manager but not owner Non-manager employee
27. Have you ever been an entrepreneur prior to your current company?
Yes No
27a. How many companies other than your current company have you previously started?
1 2 3 4 5
28. Is this business your primary employment, or is it a side job?
Primary employment Side job, hobby, or secondary income
29. What is your gender?
Female Male
Under 25 25-34 35-44 45-54 55-64 65 or above
31. What is your political preference?
!
Strong conservative Lean conservative Independent Lean liberal/progressive Strong liberal/progressive Other
32. What is the highest level of education you have reached?
No high school High school Community college Technical college Undergraduate degree Master’s degree Doctoral degree
33. What is your race or origin?
!
!
Friendliness! Rank/! Grade! !
Zoning! Rank/! Grade!
Training!&! Networking! Rank/Grade!
!
!
!
Ease!of! hiring! Rank/! Grade!
Health!&! Safety! Rank/! Grade!
Tax!code! Rank/! Grade!
Licensing! Rank/! Grade!
Training!&! Networking! Rank/! Grade!
!
!
!
!
!
! ! Table!2!–!Political!affiliation!and!taxes! ! Political!affiliation/taxes!
! I!pay!an!unfairly! high!level!of!taxes!
I!pay!an!unfairly! low!level!of!taxes!
I!pay!the!right! share!of!taxes!
Grand! Total!
250!(25%! 22!(2.3%)! 694!(71%)! 966!
! I!pay!an!unfairly! high!level!of!taxes!
I!pay!an!unfairly! low!level!of!taxes!
I!pay!the!right! share!of!taxes!
Grand! Total!
1!Q!I!work!alone!at!my! business!
1865!(31%)! 59!(1%)! 4063!(68%)! 5987!
!
Partnership!(LP,!LLP,! GP)!
I!pay!an!unfairly! high!level!of! taxes!
I!pay!an! unfairly!low! level!of!taxes!
I!pay!the! right!share! of!taxes!
Neither!supportive! nor!unsupportive!
Grand!Total! 100%! 100%! 100%! 100%! ! ! Table!6:!Responses!to!questions:!“Does!your!state!or!local!government!offer!helpful!training!or! networking!programs!for!small!business!owners?”!and!“In!general,!how!would!you!rate!your!local! (county,!city,!or!town)!government’s!support!of!small!business!owners?”! ! Local!government!is…! Yes! No! I!don't!know! No!response! Total! Supportive! 2360!(76%)! 892!(39%)! 2823!(51%)! 866!(53%)! 6941!(55%)!
! ! !
!
Neither! 2016!(29%)! 1500!(38%)! 637!(37%)! 4153!(33%)! Unsupportive! 1345!(19%)! 711!(18%)! 279!(16%)! 2335!(19%)!
Total! 6959!(100%)! 3943!(100%)! 1700!(100%)! 12602!(100%)!
! ! Table!9!and!10:!Responses!to!questions:!“How!difficult!or!easy!was!it!to!use!the!website(s)?”!(asked!of! respondents!who!said!they!had!used!a!state!or!local!government!website!to!fill!out!forms)!and!“In! general,!how!would!you!rate!your!state/local!(county,!city,!or!town)!government’s!support!of!small! business!owners?”! Local!government!is…! Easy! Difficult! Neither! Total! Supportive! 2759!(68%)! 514!(39%)! 701!(48%)! 3974!(58%)! Unsupportive! 389!(10%)! 377!(28%)! 275!(19%)! 1041!(15%)! Neither! 927!(23%)! 440!(33%)! 496!(34%)! 1863!(27%)! Total! 4075!(100%)! 1331!(100%)! 1472!(100%)! 6878!(100%)! ! State!government!is…! Easy! Difficult! Neither! Total! Supportive! 2541%(62%)! 446%(33%)! 584%(40%)! 3571%(52%)! Unsupportive! 512%(13%)! 472%(35%)! 347%(24%)! 1331%(19%)! Neither! 1036%(25%)! 420%(31%)! 545%(37%)! 2001%(29%)! Total! 4089%(100%)! 1338%(100%)! 1476%(100%)! 6903! ! ! !
!
! ! Appendix!D! ! Table 1: Overall – state friendliness on regulations, economic conditions, demographics Regression Statistics R 0.62
R Square 0.385 Adjusted R Square 0.384 S 0.684 Total number of observations 6633
ANOVA d.f. SS MS F p-level
Regression 13. 1,938.174 149.09 318.551 0.E+0 Residual 6,619. 3,097.872 0.468
Total 6,632. 5,036.046
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected? Intercept 1.275 0.052 1.172 1.378 24.338 0.E+0 Yes
Environmental regulations -0.019 0.014 -0.047 0.01 -1.291 0.197 No Health and safety regulations 0.041 0.014 0.013 0.069 2.877 0.004 Yes
Employment, labor and hiring regulations 0.102 0.015 0.073 0.131 6.876 6.739E-12 Yes Tax code and tax-related regulations 0.072 0.014 0.046 0.099 5.337 0. Yes
Licensing forms, requirements and fees 0.132 0.012 0.109 0.155 11.318 0.E+0 Yes Zoning or land use regulations 0.051 0.013 0.025 0.077 3.851 0. Yes
Revenue change 0.056 0.008 0.041 0.072 7.163 8.779E-13 Yes State economy 0.156 0.009 0.139 0.173 17.978 0.E+0 Yes License dummy -0.102 0.017 -0.135 -0.068 -5.974 0. Yes Website dummy 0.074 0.018 0.038 0.109 4.082 0. Yes
Ease of filing taxes 0.122 0.008 0.106 0.138 15.09 0.E+0 Yes Black or African American 0.226 0.028 0.172 0.281 8.141 4.441E-16 Yes
!
! Table 2: Overall – state friendliness on regulations, economic conditions, demographics, w/ training Regression Statistics R 0.682
R Square 0.465 Adjusted R Square 0.463 S 0.674 Total number of observations 3514
ANOVA d.f. SS MS F p-level
Regression 14. 1,381.106 98.65 217.433 0.E+0 Residual 3,499. 1,587.515 0.454
Total 3,513. 2,968.621
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected? Intercept 1.307 0.071 1.167 1.447 18.328 0.E+0 Yes
Environmental regulations -0.037 0.019 -0.074 0. -1.939 0.053 No Health and safety regulations 0.056 0.019 0.019 0.092 2.99 0.003 Yes
Employment, labor and hiring regulations 0.083 0.019 0.045 0.121 4.27 0. Yes Tax code and tax-related regulations 0.034 0.018 -0.002 0.069 1.861 0.063 No
Licensing forms, requirements and fees 0.133 0.016 0.102 0.163 8.43 0.E+0 Yes Zoning or land use regulations 0.068 0.017 0.034 0.101 3.944 0. Yes
Revenue change 0.053 0.011 0.032 0.074 4.962 0. Yes State economy 0.148 0.012 0.125 0.17 12.812 0.E+0 Yes License dummy -0.086 0.023 -0.132 -0.041 -3.737 0. Yes Website dummy 0.04 0.026 -0.01 0.09 1.572 0.116 No
Ease of filing taxes 0.113 0.011 0.092 0.135 10.196 0.E+0 Yes Black or African American 0.23 0.036 0.159 0.3 6.402 0. Yes
How long has your business been operating? -0.038 0.011 -0.059 -0.017 -3.518 0. Yes Training dummy 0.388 0.025 0.339 0.438 15.355 0.E+0 Yes
T (5%) 1.961 LCL - Lower value of a reliable interval (LCL)
UCL - Upper value of a reliable interval (UCL) !
!
!
! Table 3: Licensed pros only – overall state friendliness on regulations, economic conditions, demographics, licensing Regression Statistics R 0.627
R Square 0.393 Adjusted R Square 0.391 S 0.691 Total number of observations 3464
ANOVA d.f. SS MS F p-level
Regression 14. 1,067.567 76.255 159.57 0.E+0 Residual 3,449. 1,648.198 0.478
Total 3,463. 2,715.765
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected? Intercept 0.924 0.081 0.765 1.083 11.402 0.E+0 Yes
Environmental regulations -0.011 0.019 -0.049 0.027 -0.556 0.578 No Health and safety regulations 0.017 0.019 -0.021 0.055 0.88 0.379 No
Employment, labor and hiring regulations 0.118 0.02 0.079 0.157 5.958 0. Yes Tax code and tax-related regulations 0.07 0.019 0.032 0.107 3.665 0. Yes
Licensing forms, requirements and fees 0.118 0.016 0.087 0.149 7.46 1.091E-13 Yes Zoning or land use regulations 0.041 0.018 0.006 0.076 2.268 0.023 Yes
Revenue change 0.064 0.011 0.042 0.085 5.835 0. Yes State economy 0.139 0.012 0.115 0.163 11.432 0.E+0 Yes
Website dummy 0.072 0.026 0.02 0.123 2.732 0.006 Yes Ease of filing taxes 0.094 0.012 0.071 0.117 7.985 1.887E-15 Yes
Black or African American 0.227 0.038 0.153 0.302 5.963 0. Yes How long has your business been operating? -0.015 0.011 -0.037 0.007 -1.346 0.178 No
Ease of licensing compliance 0.077 0.012 0.054 0.1 6.572 5.721E-11 Yes Licensing enforcement 0.036 0.011 0.014 0.058 3.242 0.001 Yes
T (5%) 1.961 !!
!
! Table 4: Licensed pros only - overall local score on regulations, economic conditions, demographics, licensing Regression Statistics R 0.609
R Square 0.37 Adjusted R Square 0.368 S 0.702 Total number of observations 3464 ANOVA
d.f. SS MS F p-level Regression 14. 1,000.387 71.456 144.87 0.E+0
Residual 3,449. 1,701.192 0.493 Total 3,463. 2,701.578
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected?
Intercept 1.041 0.082 0.88 1.203 12.645 0.E+0 Yes Environmental regulations -0.019 0.02 -0.057 0.02 -0.941 0.347 No
Health and safety regulations 0.031 0.02 -0.008 0.069 1.572 0.116 No Employment, labor and hiring regulations 0.093 0.02 0.054 0.133 4.623 0. Yes
Tax code and tax-related regulations 0.065 0.019 0.027 0.103 3.37 0.001 Yes Licensing forms, requirements and fees 0.122 0.016 0.091 0.154 7.578 4.485E-14 Yes
Zoning or land use regulations 0.049 0.018 0.013 0.085 2.687 0.007 Yes Revenue change 0.071 0.011 0.049 0.093 6.381 0. Yes State economy 0.117 0.012 0.093 0.141 9.473 0.E+0 Yes
Website dummy 0.087 0.027 0.035 0.139 3.263 0.001 Yes Ease of filing taxes 0.086 0.012 0.062 0.109 7.179 8.586E-13 Yes
Black or African American 0.211 0.039 0.135 0.287 5.446 0. Yes How long has your business been operating? -0.015 0.011 -0.037 0.008 -1.285 0.199 No
!! !
!
! ! Table 5: Website users – state friendliness score on regulations, economic conditions, demographics, ease of website usage Regression Statistics R 0.649
R Square 0.422 Adjusted R Square 0.42 S 0.675 Total number of observations 4369
ANOVA d.f. SS MS F p-level
Regression 13. 1,445.365 111.182 244.22 0.E+0 Residual 4,355. 1,982.627 0.455
Total 4,368. 3,427.992
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected? Intercept 1.184 0.066 1.054 1.313 17.974 0.E+0 Yes
Environmental regulations -0.023 0.017 -0.057 0.01 -1.356 0.175 No Health and safety regulations 0.015 0.017 -0.019 0.049 0.866 0.386 No
Employment, labor and hiring regulations 0.116 0.018 0.081 0.151 6.567 5.749E-11 Yes Tax code and tax-related regulations 0.061 0.016 0.029 0.093 3.72 0. Yes
Licensing forms, requirements and fees 0.135 0.014 0.107 0.162 9.711 0.E+0 Yes Zoning or land use regulations 0.062 0.016 0.031 0.093 3.952 0. Yes
Revenue change 0.058 0.009 0.039 0.076 6.093 0. Yes State economy 0.15 0.011 0.129 0.17 14.197 0.E+0 Yes License dummy -0.106 0.021 -0.146 -0.065 -5.102 0. Yes
Ease of filing taxes 0.087 0.01 0.066 0.107 8.388 1.11E-16 Yes Black or African American 0.203 0.034 0.137 0.27 6.018 0. Yes
! ! !
!
Regression Statistics R 0.155
R Square 0.024 Adjusted R Square 0.023 S 1.034 Total number of observations 12565
ANOVA d.f. SS MS F p-level
Regression 5. 328.664 65.733 61.455 0.E+0 Residual 12,559. 13,433.272 1.07
Total 12,564. 13,761.935
Coefficients Standard Error LCL UCL t Stat p-level H0 (2%) rejected? Intercept 3.741 0.022 3.689 3.792 169.037 0.E+0 Yes
Asian 0.023 0.071 -0.143 0.189 0.324 0.746 No White (Caucasian) -0.039 0.025 -0.097 0.02 -1.54 0.124 No
Hispanic, Latino, or Spanish 0.183 0.04 0.09 0.277 4.544 0. Yes Other 0.13 0.048 0.019 0.24 2.728 0.006 Yes
!
Table 7: California – overall state friendliness on regulations, economic conditions, website, and taxes Regression Statistics R 0.654
R Square 0.427 Adjusted R Square 0.421 S 0.704 Total number of observations 985
ANOVA d.f. SS MS F p-level
Regression 11. 359.544 32.686 65.934 0.E+0 Residual 973. 482.354 0.496
Total 984. 841.897
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected? Intercept 1.003 0.11 0.788 1.218 9.146 0.E+0 Yes
Environmental regulations 0.006 0.037 -0.067 0.078 0.158 0.875 No Health and safety regulations 0.062 0.038 -0.012 0.137 1.648 0.1 No
Employment, labor and hiring regulations 0.119 0.04 0.04 0.197 2.977 0.003 Yes Tax code and tax-related regulations 0.122 0.037 0.05 0.194 3.308 0.001 Yes
Licensing forms, requirements and fees 0.114 0.03 0.054 0.173 3.736 0. Yes Zoning or land use regulations 0.014 0.036 -0.057 0.086 0.394 0.694 No
Revenue change 0.025 0.021 -0.015 0.066 1.238 0.216 No State economy 0.14 0.022 0.096 0.184 6.271 0. Yes License dummy -0.127 0.047 -0.22 -0.035 -2.694 0.007 Yes Website dummy 0.1 0.047 0.008 0.192 2.137 0.033 Yes
!
Table 8: Texas – overall state friendliness on regulations, economic conditions, website, and taxes Regression Statistics R 0.573
R Square 0.328 Adjusted R Square 0.316 S 0.648 Total number of observations 602
ANOVA d.f. SS MS F p-level
Regression 11. 121.179 11.016 26.203 0.E+0 Residual 590. 248.045 0.42
Total 601. 369.224
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected? Intercept 1.49 0.162 1.171 1.809 9.178 0.E+0 Yes
Environmental regulations -0.033 0.053 -0.138 0.071 -0.625 0.532 No Health and safety regulations 0.006 0.046 -0.085 0.097 0.12 0.904 No
Employment, labor and hiring regulations 0.062 0.045 -0.026 0.15 1.385 0.167 No Tax code and tax-related regulations -0.03 0.041 -0.109 0.05 -0.731 0.465 No
Licensing forms, requirements and fees 0.165 0.037 0.092 0.239 4.426 0. Yes Zoning or land use regulations 0.136 0.047 0.043 0.228 2.882 0.004 Yes
Revenue change 0.092 0.025 0.043 0.142 3.664 0. Yes State economy 0.169 0.03 0.111 0.227 5.713 0. Yes License dummy -0.127 0.055 -0.235 -0.019 -2.303 0.022 Yes Website dummy 0.081 0.059 -0.034 0.196 1.377 0.169 No
!
Table 9: New York – overall state friendliness on regulations, economic conditions, website, and taxes Regression Statistics R 0.592
R Square 0.35 Adjusted R Square 0.326 S 0.725 Total number of observations 305
ANOVA d.f. SS MS F p-level
Regression 11. 82.863 7.533 14.339 0.E+0 Residual 293. 153.93 0.525
Total 304. 236.793
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected? Intercept 1.213 0.223 0.775 1.652 5.449 0. Yes
Environmental regulations -0.064 0.086 -0.234 0.106 -0.74 0.46 No Health and safety regulations 0.189 0.074 0.044 0.334 2.564 0.011 Yes
Employment, labor and hiring regulations 0.015 0.074 -0.13 0.16 0.205 0.838 No Tax code and tax-related regulations 0.104 0.064 -0.022 0.23 1.627 0.105 No
Licensing forms, requirements and fees 0.125 0.062 0.003 0.246 2.025 0.044 Yes Zoning or land use regulations 0.018 0.076 -0.131 0.166 0.233 0.816 No
Revenue change 0.007 0.04 -0.072 0.085 0.164 0.87 No State economy 0.104 0.047 0.012 0.195 2.222 0.027 Yes License dummy 0.032 0.085 -0.135 0.199 0.377 0.706 No Website dummy 0.181 0.087 0.01 0.353 2.081 0.038 Yes
!
Table 10: Florida – overall state friendliness on regulations, economic conditions, website, and taxes Regression Statistics R 0.56
R Square 0.314 Adjusted R Square 0.302 S 0.712 Total number of observations 650
ANOVA d.f. SS MS F p-level
Regression 11. 147.886 13.444 26.504 0.E+0 Residual 638. 323.624 0.507
Total 649. 471.51
Coefficients Standard Error LCL UCL t Stat p-level H0 (5%) rejected? Intercept 1.331 0.159 1.018 1.643 8.366 3.331E-16 Yes
Environmental regulations 0.033 0.048 -0.062 0.128 0.684 0.494 No Health and safety regulations -0.021 0.046 -0.112 0.07 -0.455 0.649 No
Employment, labor and hiring regulations 0.072 0.051 -0.028 0.171 1.417 0.157 No Tax code and tax-related regulations 0.093 0.051 -0.006 0.193 1.841 0.066 No
Licensing forms, requirements and fees 0.106 0.041 0.026 0.186 2.61 0.009 Yes Zoning or land use regulations 0.066 0.044 -0.02 0.152 1.499 0.134 No
Revenue change 0.067 0.027 0.015 0.119 2.542 0.011 Yes State economy 0.161 0.032 0.099 0.223 5.1 0. Yes License dummy -0.15 0.06 -0.267 -0.033 -2.524 0.012 Yes Website dummy 0.158 0.063 0.035 0.282 2.519 0.012 Yes
!
