MacIver News Service | November 21, 2012[Madison, Wisc…] According to a new study from the Goldwater Institute, each state’s poverty level is a direct reflection of the number of entrepreneurs who set up shop inside its borders.
Conducted for Global Entrepreneurship Week, the study found that for every one-percentage point increase in the rate of entrepreneurship in a state, there is a two percent drop in that state’s poverty rate.
Additionally, the Goldwater Institute study shows that the best ways to encourage entrepreneurship are to lower taxes and reduce regulations.
In states with no income tax, nearly 22 percent of the workforce is made up of entrepreneurs. Conversely, states that employ an income tax have an entrepreneurial workforce of 19.6 percent.
Burdensome regulations also provide a natural barrier to start-ups. The report cites licensing laws, high-permitting fees and other government overreaches as detrimental to individuals who are seeking to start their own businesses.
In Wisconsin, incoming legislative leaders have pledged to overhaul the state’s income tax code and conduct a thorough examination of the government’s regulatory requirements.
These initiatives should provide welcome news to start-ups and workers across Wisconsin.
To read the full report, click the link below.