How Much Do Regulations Hurt Alabama Small Businesses?

Date: September 01, 2015

Alabama ranks No. 15 in the nation in least burdensome regulatory environments for small business, according to a study.

Many factors influence small business growth in each state, including geography, historical growth patterns, tax policies and state regulatory policies. The Pacific Research Institute released a study ranking states on how burdened they are by state regulations. Alabama ranked No. 15.

The 50-State Small Business Regulation Index ranks the nation based on the impact from each state’s regulatory environment on small biz. The Index’s purpose is to compare environments that are associated with slower business growth versus more robust small business growth, the report says.

Alabama’s No. 15 ranking is in part due to the fact that it doesn’t require short-term disability insurance, it adheres to the $7.25-per-hour national minimum wage, it abides by family leave regulations, it is a right-to-work state and most notably, tops Pacific Research Institute’s 50-State Index of Energy Regulation Alabama suffers from being an alcohol control state and falling in the bracket of least regulatory flexibility in the country.

Related Content: Small Business News | Alabama

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