South Carolina: Third-Worst State For Entrepreneurs

PALMETTO STATE RANKS NO. 48 ON “STATE OF ENTREPRENEURSHIP” STUDY On the same day South Carolina’s Department of Commerce was busted paying for positive economic development press (again), a scientific study released by the University of Nebraska painted a vastly different picture of the Palmetto State’s economy. According to a…


On the same day South Carolina’s Department of Commerce was busted paying for positive economic development press (again), a scientific study released by the University of Nebraska painted a vastly different picture of the Palmetto State’s economy.

According to a new report from The University of Nebraska-Lincoln, entrepreneurs looking for a friendly economic climate should steer well clear of South Carolina.

The Palmetto State ranked No. 48 on the school’s “State of Entrepreneurship” report, which reflects “states’ entrepreneurship environment, growth in business formation and technological innovation” using five core metrics.

What are those metrics? According to the report, its rankings are based on a “state’s percentage growth and per capita growth of business establishments, its business formation rate, the number of patents per thousand residents and income per non-farm proprietor in each state.”

This abysmal ranking is sad … but not surprising.  After all, our state’s anti-competitive tax climate, worst-in-the-nation public education system and totally corrupt, dysfunctional government isn’t doing anybody any favors … unless of course you’re employed by government or on the receiving end of its special interest crony capitalism.

And therein lies the problem …

Rather than create a better tax climate, S.C. Gov. Nikki Haley and our state’s “Republican-controlled” legislature have chosen instead to grow government and expand their reliance on taxpayer-funded incentives (a.k.a. glorified bribes to select companies) that shift the state’s tax burden onto small businesses.

Has that worked?  Of course not …

State government has also tried – and failed – to co-opt entrepreneurship itself.

There are a few things we can do to turn this failure around: Cut income taxes, implement market-based reforms in education (i.e. universal parental choice) and reduce/ restructure our corrupt state government.  If we do those things, our state’s entrepreneurial spirit will soar.  If we don’t, things will continue as they are …



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BigT October 24, 2012 at 12:25 pm

Obama KNEW!!!!!!….and HE LIED!!!!!

(Reuters) – Officials at the White House and State Department were advised two hours after attackers assaulted the U.S. diplomatic mission in Benghazi, Libya, on September 11 that an Islamic militant group had claimed credit for the attack, official emails show.

FITS you’re an EFFIN Disgrace….trying to call yourself media…

Smirks October 24, 2012 at 1:18 pm

If only the embassy didn’t get attacked, then SC wouldn’t be near last place in everything!

Sailor October 24, 2012 at 1:22 pm

You’re off topic asshole!

hhuuhh?? October 24, 2012 at 4:05 pm

Hey, Big T(urd), you are off topic and stupid. Obama said the day after that Benghazi was an “act of terror”. The emails say that terrorists were claiming credit.
Where’s the inconsistency?

BigT October 24, 2012 at 4:16 pm

EXACTLY: FITS wants er’body OFF TOPIC hoping not to talk about his lord and master Obama…

Common Sense October 24, 2012 at 4:58 pm

as much as T obsesses over have to believe that in reality Obama is Ts master and lord.

BigT October 24, 2012 at 5:11 pm

Yall used to obsess over him til a couple weeks ago…Hahahahahaha…


backontopic October 24, 2012 at 12:32 pm

According to this new study,generally the states with the most progressive politics are most favorable to business development and entrepreneurship. There are exceptions such as Texas, but this is largely due to the progressive parts of Texas.

GreenvilleLwyr October 24, 2012 at 12:32 pm

Thank goodness for Louisiana and Michigan, right?

I find it interesting that Massachusetts is the best place for entrepreneurs in your little study. I thought that place was some horrible, awful cesspool of high taxes, universal healthcare, gay marriage, and Kennedys.

Jan October 24, 2012 at 1:06 pm

Isn’t it amazing how that works out. Forbes magazine just released its 2012 list of best countries for business. They are in order

1. Singapour
2. Finland
3. Sweden
4. Israel
5. Austria
6. Austrailia
7. Switzerland

Wait!! what is happening here?. This must be a conspiracy. These are a bunch of countries with higher taxes than the US, excellent public education systems, and all provide universal health care to their citizens.

Forbes is obviously run by a bunch of left wing nut jobs.

Freedom Fighter October 24, 2012 at 2:44 pm

Yep! GD progressives!

Bonhoeffer October 24, 2012 at 4:28 pm

Greenville Lawyr and Jan: Don’t confuse FITS by stating facts.

sid October 24, 2012 at 4:43 pm

I’m not sure I understand your point, Jan, especially when you throw in the gratuitous health care reference. The Forbes piece is based on the Global Dynamism Index for 2012. It doesn’t rate the public education systems, although it does reference “school life expectancy.” It does consider corporate tax burden, but notes the burden in the US is “heavier than average.” It even notes Singapore’s advantage of the “lightness of its corporate tax burden.” Health care is in no way factored in.

Soooo, what are you talking about?

sweepin October 24, 2012 at 12:42 pm

“And therein lies the problem …”

No, Fits, those are not the problem. They are but a sample of the problem. In my opinion, not even the largest problems.

SC has historically been a “capital poor” state:

1) Our State and Local Banks were small and undercaptilized.

2) Vested interests in our state weren’t (and still aren’t in many cases) interested in growth by entrepreneurs who might compete for their workers. They sat on the Boards of those banks and made sure they were operated in their interests.

3) Even today our financial institutions are “out of state” entities. They can’t personalize a loan based on known initiative and character of individuals even if they wish to. They don’t have those kind of decision makers as a part of our SC communities anymore. We lost all of our regional offices during the consolidation and economics downturn of the first decade of the century.

4) The (a) economic ignorance, and (b) the dogmatic perversion of political philosophy that permeates political discours in this “One Party” state.

Once again, you offer nothing but shilling for special interests.

sweepin October 24, 2012 at 12:56 pm


…dogmatic perversion of economic philosophy…

Laughing uncontrollably October 24, 2012 at 1:00 pm

The College of Charleston has an “entrepreneur tract” for business students taught by professors who’ve never worked in the private sector. Hilarious. I once had a confrontation with one of those bastards and asked him, “What do you know about running a business?” He said, “Plenty. I own three businesses, and I’m operating them right here from my desk.” My reply, “Those are called investment accounts, buddy.” A bunch of complete, total losers.

Knott October 24, 2012 at 1:01 pm

The biggest problems is all these corrupted Chamber of Commerences in South Carolina taking their cuts. In Lexington, the mayor also controls the Chamber of Commerence (and pays himself a fat salary, WHERE YOU FITS ON THIS?). In order to open a business one has to “wet the beak” of the CoC, zoning boards, and “consulting fees” to local politicians.

Bill October 24, 2012 at 1:08 pm


The exact reason SC is a rotten place for new businesses, is the complete and total lack of Venture Capital which is provided by a vibrant local banking community. Not a bunch of Branch Banks operated out of North Carolina.

When SC let interstate banking steal all of our banks to North Carolina, it ruined our State. Those crooked legislature members who took massive bribes to vote for it are now all dead. And, hopefully rotting in hell where they belong for selling out our State.

harik October 24, 2012 at 2:06 pm

I started a business here in SC three years ago. It’s doing okay. I’m not sure what the specific metrics are in the above study, but it sure would be nice if the government gave non-immigrants the same low-interest loans they give immigrants.

johnb October 24, 2012 at 2:11 pm

trickle down governmeny hasn’t worked in this state

insider October 24, 2012 at 3:19 pm

Speaking of entrepreneurs, saw a sign on the outside of Exotica. Retiring. Again?

tomstickler October 24, 2012 at 3:50 pm

Even my fourteen patents could not prevent SC from being dead last in patents per thousand residents.

How the hell did we manage a negative 0.508 index in this category!?

tomstickler October 24, 2012 at 3:56 pm

Oops — read the wrong column. That -.0508 index was for average proprietor income, worst in the nation.

Patents per 1000 residents was not the worst. There were seventeen states worse than SC in this measure, so in that case, I’ll take part of the credit!

BigT October 24, 2012 at 5:24 pm

The top 10 states with the lowest tax burdens as a percentage of state income are as follows:

1.Alaska, 7.0 percent
2.South Dakota, 7.6 percent
3.Tennessee, 7.7 percent
4.Louisiana, 7.8 percent
5.Wyoming, 7.8 percent
6.Texas, 7.9 percent
7.New Hampshire, 8.1 percent
8.Alabama, 8.2 percent
9.Nevada, 8.2 percent
10.South Carolina, 8.4 percent

Why does FITS HATE SC so much?

Why is FITS So Ignorant?

Crooner October 24, 2012 at 6:09 pm

This proves we need to elect Republicans to run the state… I mean, REAL Republicans, not those RINOs, then we’d be moving up… never mind.

Whoa October 24, 2012 at 6:19 pm

Don’t let your babies grow up to be non-farm propietors. Low of $17k in SC and high of $38k in a few places. How can that be? And don’t tell me everyone in SC has transferred their intellectual property to a Cayman corporation and licensed it back to their SC businesses in such a way as to basically zero out their taxable income. Cause I just won’t believe it.

Booyah October 24, 2012 at 9:14 pm

SC is the sort of State where established businesses locate for cheap labor, and that’s fine.

Junga October 25, 2012 at 10:52 am

Hey Big T
The claim for the attack came from a post on face book.
I guess your big dumb @$$ believes everything posted on Facebook is a fact.. ….
Get a clue!

tired of the crap October 26, 2012 at 10:58 am

top of the list for being “friendly to business” but bottom for entrepreneurs. The complaints of small business owners are valid.


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