Utah earns A+ for “small business friendliness”

Tuesday, May 8th, 2012

When it comes to starting a small business, there’s no better place than Utah. The Beehive State was one of only four to earn an A+ in a recent survey.

Thumbtak.com released its 2012 Small Business Survey today, done in partnership with the Kauffman Foundation. Utah, Idaho, Oklahoma and Texas were the only states to earn the highest possible grade.

Click here to see the interactive map.

Utah scored an A+ in ease of starting a business, an A grade in categories including health and safety, licensing and environmental, and scored an A- in regulations, tax code and zoning.

The survey of 6,000 small business owners was conducted over two months across the country. The data provides ground-level insight on the regulatory climate across the nation and its impact on the economy.

“Six thousand small business owners have told an unusually nuanced story about what they value in their state or city government,” said Sander Daniels, co-founder of Thumbtack.com. “Entrepreneurs value a lot more than just low tax rates. Easy-to-understand licensing regulations and well-publicized training programs are often overlooked as critical tools necessary to support small business.”

Small business owners gave California, Hawaii, Vermont and Rhode Island an F with New York earning a D.

Some of the key findings include:

- Small businesses said licensing requirements were nearly twice as important as tax rates in determining their state or city government’s overall business friendliness.

- An important predictor of small business friendliness was whether small business owners are aware of the state or local government offering training programs for small businesses.

- Among small business owners nationally, women were nine percent more likely than men to feel supported by their state governments.

“Asking entrepreneurs to rank state friendliness to their businesses is a powerful resource for helping policymakers understand the needs of business owners and for helping aspiring founders understand the full dimensions of their business environment,” said Dane Stangler, director of research at the Kauffman Foundation.

What a difference seven decades can make

Tuesday, April 3rd, 2012

In 1940, Utah was among the top five states in the nation for college graduates. By 2010, we no longer made that list. Our rate has gone up but our ranking has gone down.

Yesterday, the U.S. Census released a report entitled “Then and Now,” comparing American life between 2010 and the National Archive records from 1940 (also released this week). The report found college graduation has increased significantly over the past 70 years as the American Economy has grown and evolved. The bad news is, it has only reached just over 28 percent.

A few thing have changed in the American economy over the same seven-decade period. Today’s economy requires more highly skilled workers than ever before, and that number trend will only continue. Education is a critical component to our economy.

Utah’s college graduation rate in 1940 was 6.2 percent–one of the five highest in the nation. According to the 2010 Census, 29.4 percent of Utahns 25 and older have earned a bachelor’s degree or higher. So the good news is, a much higher percentage of Utahns are now earning college degrees than 70 hers ago, but our current rate leaves us nearly 10 points behind Massachusetts at 39 percent and over 20 points behind District of Columbia’s 50 percent.

Utah needs to reverse a 70 year trend of sliding down the list of college graduation rates, and we need to do it in the next eight years. Luckily, we have a plan.

The Salt Lake Chamber has joined 14 other chambers from across the state, as well as several other business organizations, to call for increased investment and innovation in education. The movement is called Prosperity 2020. By the end of this decade, we want 66 percent of all Utah adult to hold a college degree or skilled trade certificate. Prosperity 2020 is already working with legislators and education experts to apply proven business principles to strengthen education.

See what you can do by visiting prosperity2020.com or join us for our Education Forum on Thursday, April 5 at 8:00 a.m. at the Chamber office in downtown Salt Lake City.

By taking significant steps today, we can change the course we’re on and put Utah on a path to enduring prosperity. It all starts with education.

How has education impacted your career? How important to your business are well educated, highly skilled workers?

Utah leads in exports, World Bank helping

Tuesday, March 6th, 2012

Yet another hint that Utah’s economy is improving—the Beehive State is once again a leader in merchandise export growth in the U.S. with 39.5 percent growth from 2010 to 2011. This is the third year in a row that Utah has topped the list when it comes to growth in exports.

In 2010, President Barack Obama announced a National Export initiative to double exports in five years by helping farmers and small businesses increase and reform their exports. The anticipated impact of this initiative is the creation and support of two million jobs nationwide.

The Salt Lake Chamber outlined a 10-point plan called the Utah Jobs Agenda in January of 2011 emphasizing the importance of exports among other things like education.

Now Utah is leading the U.S. in merchandise export growth and is nearly halfway to Pres. Obama’s goal in only two years. In 2010, Utah had $13.8 billion in exports and that rose to an impressive $18.93 billion in 2011. Over the past five years alone, there’s been an overall 142.3 percent growth from Utah merchandise exports. Considering the economic fall America experienced during that time, this growth is rather remarkable.

World Trade Center Executive Vice President and Chief of Operations Elizabeth Goryunova says Utah’s export growth increase can be attributed to “a rise in awareness to what we are trying to achieve,” which is to increase the number of companies that aren’t exporting to establish international connections to start exporting goods. Goryunova says another goal is to “expand the market of the one percent of companies that do export.”

The World Bank issues grants and loans to developing countries for significant projects—coordinating with their governments to decide the best way to pursue them. The United States is a big shareholder in the World Bank and is a big contributor alongside other giants like Japan.

When the World Bank and the individual government of a country seeking assistance decide on a course of action, the World Bank calls on resources and companies of sponsors to contribute to the cause—including those in the U.S. This is where our exports get a big boost.

While Utah’s earnings from exports don’t compare to the hundreds of billions of dollars a seaside state does, Utah is experiencing export growth, while those ports have seen declines in revenue.

A big contributor to Utah’s success is the rising price of primary metals, like gold and copper. Because of this, our export total increases even though we may not necessarily be exporting more goods. Primary metals attributed to 64 percent of Utah’s exports in 2011—an increase of about 15 percent from 2010.

So what does this export growth mean? More jobs. The rise in merchandise exports increase production in Utah, creating more jobs that start the ripple effect that boosts the local economy. For every $90,000 in exports, one job is created. For example, with the $5 billion dollar boost in exports, Utah created 55,000 jobs more than it did in 2010.

By moving Utah businesses into profitable global markets, and by helping them secure World Bank funded projects, Utah exports can continue to increase at record levels. Chamber members interested in learning more about World Bank funded projects can contact the Chamber for more information.

U of U tops in startups… again

Friday, February 24th, 2012

For the second year in a row, the University of Utah is No. 1 in the nation when it comes to starting university research-based companies, according to a survey released by the Association of University Technology Managers (AUTM).

The newest survey measures the 2010 fiscal year (July 1, 2009 to June 30, 2010) where the U generated 18 startups. MIT followed in second despite spending nearly three times as much on research than Utah.

“Education is key to our economy in more ways than one,” said Lane Beattie, president and CEO of the Salt Lake Chamber. “Not only are we training our future employees, managers and CEOs, our university students and researchers can turn their ideas into viable businesses. It’s a win-win.”

The economic impact from the University of Utah’s startup companies in the 2010 fiscal year resulted in the creation of over 15,000 jobs, $754.5 million in personal income and $76.6 million in tax revenue.

“This achievement is again a testament not only to our world-class researchers and their innovative discoveries, but also to the university’s unique ability to deliver that life-changing technology to the people who need it most,” says A. Lorris Betz, interim president of the University of Utah. “In addition, the companies we produce give our community a much-needed economic boost, create jobs and grow Utah’s reputation as an innovations hub in the nation and world.”

The U launched its first startup in 1970. Since then, it has had more than 200 other research-based startups with 125 of them founded in just the past six years.

Ever since the U created the Technology Venture Development office in 2005, the school has consistently ranked high in the AUTM survey. In the past five years alone, the U has been one of the top two universities for startups, moving a head of MIT for the first time last year.

“Our success is a credit to our exceptional faculty, students and community,” says Jack Brittain, vice president for Technology Venture Development at the University of Utah. “We have a tremendous culture of innovation that makes Utah one of the friendliest places for inventors and entrepreneurs, and everyone in the state benefits from the resulting economic growth. We are also fortunate to have state and university programs that support technology development so we can create companies in Utah.”

The U also ranked higher than the national average in a couple other categories AUTM’s survey, with 287 active technology licenses (ntl. avg. 210), 208 invention disclosures (ntl. avg. 113) and 41 U.S. patents (ntl. avg. 24)

Brigham Young University also made the list with 13 startups along with other top-startup universities like Columbia, Cornell, Johns Hopkins and Purdue—all with more than 10 new companies.

Forbes ranks Utah as Best State for Business… again.

Wednesday, November 23rd, 2011

One of the world’s most prestigious financial publications has named Utah the Best State For Business for the second consecutive year. Forbes debuted its ranking with Utah atop the charts this week.

“Utah repeats this year as Forbes Best State for Business and Careers in our sixth annual look at the business climates of the 50 states. No state can match the consistent performance of Utah. It is the only state that ranks among the top 15 states in each of the six main categories we rate the states on.

“Utah highlights include energy costs 31% below the national average and employment growth that has averaged 0.6% the past five years. Compare that to the U.S. as a whole where job growth has averaged negative 0.6% since 2005. Utah’s 5% corporate tax rate is well below western neighbors Arizona, Idaho and New Mexico. Utah ranks sixth in a new Tax Foundation study that looks at the tax burden on business in each state across different industries. As part of the ranking, we included the study, which will be released to the public in the coming months.”

Forbes notes that momentum is building in Utah and rankings, like this one, attract businesses across the spectrum and from around the country.

“Businesses are getting the message on Utah. Procter & Gamble, ITT, Home Depot and Boeing all announced expansions in Utah this year. The Goldman Sachs office in Salt Lake City is its second biggest in the Americas with more 1,000 employees and significant expansion expected over the next four years.

“Technology companies particularly have had Utah on their radar as an affordable alternative to California with overall business costs in Utah 10% below the national average. Adobe Systems, eBay, Electronic Arts and Oracle have all expanded in Utah in recent years.

“Companies are also attracted by Utah’s population growth which is one of the fastest in the country and provides a burgeoning workforce. “Utah has a young, dynamic economy with a vibrant high-tech sector,” says Mark Zandi, chief economist of Moody’s Analytics.

“The Utah story is far from over. Job growth is projected to be 2.4% annually through 2015 according to Moody’s, sixth best in the country.”

You can read the full article on Forbes.com.

Utah named one of the nation’s “richest states”

Tuesday, September 20th, 2011

A new ranking shows Utah is the eight richest state in the nation. That’s according to 24/7 Wall St. which compared median income to poverty rates.

The Beehive State’s median income is just under $60,000 while the poverty rate is the third lowest in the nation at jus 9.1 percent. Utah also has the 23rd highest rate of citizens with health coverage and the 15th lowest unemployment rate in the country.

The report says, “Utah has the third-lowest poverty rate in the United States. While the Salt Lake City metropolitan region, and nearby Ogden and Provo, make up only a small part of the state, a huge percent of the state’s population lives in the area. All three are flourishing with young populations and diverse economies bolstered by technology, health care and several large universities. And because these cities represent most of the state’s population, the state’s median income is high. Davis County, which is part of the Ogden Metropolitan Statistical Area, is home to roughly 10% of the state’s population. It also has a median income of $66,220, the third-highest in the state.”

You can read the entire article here.

WSJ says Ogden is “Where the Action Is” in Outdoor Sporting Gear

Wednesday, August 24th, 2011

If you like playing in the Outdoors, there’s a good chance the equipment you use has had a touch in Ogden, Utah.

Earlier this week, the Wall Street Journal listed the seven cities “Where the Action Is,” and the northern  Utah city took the top spot for outdoor sporting gear.

The WSJ has high praise for business clusters–a key component of Utah’s economic development strategy.

“Utah has a relatively modest share of the industry; the state estimates it’s home to about 5% of the outdoor-products firms in the U.S. Still, companies that expanded in or relocated to Utah have created at least 2,550 jobs in the past six years, according to the Economic Development Corporation of Utah.

“Industry goliaths get partial credit for the surge in Ogden. Amer Sports Corp., the company behind Wilson, Atomic and other brands, consolidated its U.S. operations in 2007 and moved them to the town. Quality Bicycle Products Inc., a distributor based in Bloomington, Minn., set up its second location in Ogden in 2010.”

You can read the entire article here.

Ogden, Utah (Outdoor Sporting Gear)
Cities featured in the article include:
Albany, New York (Nanotechnology)
Asheville, North Carolina (Beer Brewing)
Indianapolis, Indiana (Life Sciences)
Kansas City, Kansas & Missouri (Information Technology)
Nashville, Tennessee (Healthcare)
San Antonio, Texas (Cybersecurity)

SLC named among best cities for young professionals

Wednesday, July 27th, 2011

Salt Lake City is ranked fourth among the top cities for young professionals in a list published by Forbes today.

Utah’s capital city is lauded for, “A large number of small businesses per capita, a high concentration of banks and good paychecks mean the ‘Crossroads of the West’ offers opportunity to young professionals.”

Salt Lake City was ranked behind Des Moines, Iowa; Raleigh, North Carolina; and Madison, Wisconsin.

For more information, read the full article here.

To hear the Chamber comment on the ranking on KSL Newsradio, CLICK HERE.

Forbes also points out that Salt Lake City has job growth of 1.32 percent, that’s the second highest rate among the top five cities on the list. Big name companies like Goldman Sachs, Twitter and Adobe have all invested significantly in Salt Lake City. You can see a list of some of the businesses hiring HERE.

Young professionals are attracted to Salt Lake City for a number of reasons: high tech companies are growing here and there’s no shortage of outdoor activities like hiking, rock climbing, mountain biking, or enjoying the Greatest Snow on Earth.

Let’s not forget that younger professionals are often prefer time with their iPads and smartphones than time behind the wheel. Our first-rate transit system is a draw not to be underestimated.

Our investment in technology is paying off. The creation of  the Utah Science Technology and Research (better knows as USTAR) attracts top talent, as well as and more than $130 million in capital funding to benefit more than 80 companies started in the past four years. Last year the University of Utah surpassed MIT and every other school in the nation for the highest number of research-produced start-ups.

Utah has always benefitted from a well-educated, young population. If there is reason for concern it’s the relatively low rate of college graduates in Salt Lake City (just 29.7 percent according to Fortune, more than 11 points lower than the three cities we trail on the list). That number needs to increase to ensure we have the professionals to fill the jobs we are creating. Business leaders understand education is the key to enduring prosperity and they have set a goal to have two-thirds of all Utahns hold a college degree or certificate by the year 2020. You can learn more about the efforts of Prosperity 2020 by clicking HERE.

AmericanStyle Names Salt Lake City as a Top Arts Destination

Tuesday, July 12th, 2011

Salt Lake City has been named a “Top 25 Arts Destination” in the June 2011 edition of AmericanStyle magazine.  For the sixth year in a row, the national arts lifestyle magazine has recognized Salt Lake City as one of the top travel destinations for the arts among mid-size cities.

The word is out that not only does Utah have the “Greatest Snow on Earth,” but it also boasts a surprisingly rich cultural climate.  No longer a well-kept secret, the arts community in Salt Lake City is a strong contributor to the local quality of life and is an attraction for arts enthusiasts at any time of year.

The Salt Lake City arts community provides a wealth of choices for residents and visitors to experience, from music and dance to theatre and opera, from children’s activities to festivals, from film and literature to every type of expression in the visual arts.

Salt Lake City is recognized for having a solid foundation of established arts organizations like the Utah Symphony/Opera, Ballet West, Ririe-Woodbury Dance Company, Repertory Dance Theatre and the Utah Museum of Fine Arts.  Utah’s capital city is also home to a number of professionally designed and managed cultural facilities, including Abravanel Hall, the Capitol Theatre and the Rose Wagner Performing Arts Center.  That’s not to say the city doesn’t have a thriving contemporary arts scene as well, with a number of artist-initiated and other programs in the visual, literary and performing arts.   The media arts scene has been strong for many years, including the Sundance Institute, the SLC Film Center, Salt Lake Film Society and Spyhop Productions.

There is something for everyone, including a wide array of outdoor arts events in the summer months, featuring the Twilight Concert Series, Gallivan Concert Series, Red Butte Garden Concerts, the Utah Arts Festival and the Living Traditions Festival.

For more information on the arts in Salt Lake City, visit www.slcgov.com/arts or www.nowplayingutah.com.

Information provided by the Salt Lake Mayor’s Office.

Fortune names SLC one of world’s 15 best new cities for business

Friday, July 8th, 2011

Salt Lake City has received more adulation for our business friendly environment, this time from Fortune magazine.

In the feature available in online today and on newsstands next week, Fortune says:

“Move over, Stanford: The University of Utah claim to lead the nation’s universities in creating successful startups–and the Brookings Institution says the city’s workforce is the nation’s most productive. More reasons business like Salt Lake: inexpensive utilities and state property taxes, and corporate taxes that are the ninth-lowest in the U.S.”

Salt Lake City and Austin, Texas were the only two U.S. cities on the list. Vancouver, Canada and San Jose, Costa Rica round out the four cities included from North America. You can see the interactive map by clicking here.

The magazine also features the founder of Omniture, Josh James.