Do Business-Friendly States Attract Female Entrepreneurs?

Abstract

In this study, we examine whether there is a significant difference in small business owner characteristics in business-friendly states in the U.S. versus in less friendly states. In the survey that we employ, business-friendliness has four components. These are the ease of hire, ease of start, training/networking programs, and regulations. The owner characteristics including “position in the firm”, “previous entrepreneurial experience”, “gender”, “age”, “political view”, “education level”, and “race” are also included in the survey. Our results for “overall business friendliness” show that, in business-friendly states, there are more female owners and experienced owners when compared to the other states. In these states, there are more conservatives but fewer liberals and independents. Also, in these states, we are seeing more technical college and high school graduates and fewer community college graduates and master’s graduates. Finally, in these states, we see fewer Asian or Hispanic owners when compared to the other states.