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■-- Government Regulation
<br /> 63%stated that regulation impacts their business, 10%stated that it did not, and 27%were
<br /> non-respondents. 170 chose to discuss regulation's positive impact. Of these, 64%stated that
<br /> regulation was good because it makes sense, it is fair, it keeps industries honest, and it increases
<br /> the respondent's business. Next 24%cited wanting all necessary regulations, and 10%demanded
<br /> that regulations be enforced for all people. A much higher number of people—536—chose to
<br /> speak to regulations negative impact. 39%stated it was harmful because it was inconsistent,
<br /> overregulated, unchecked, inefficient, outdated, or unnecessary. Next, 29%stated that regulation
<br /> was expensive, 21%cited it taking up too much time and being burdensome, and 8%cited needing
<br /> lower taxes.
<br /> Taxes
<br /> Business owners were asked to describe if taxes were a barrier to their starting or
<br /> expanding a business in Minnesota, and what specific taxes were barriers. Of the 624 respondents,
<br /> 40%cited property tax, 24%cited income tax, and 13%cited taxes in general. Next were sales tax
<br /> at 13%, corporate tax at 8%, and unemployment at 7%. Interestingly, this question only asks what
<br /> taxes are barriers to business, but 12%volunteered that taxes are not a problem for them.
<br /> Respondents were asked to state what level these taxes should be to permit them to start
<br /> or expand their business, and 238 chose to respond. However, only a handful of people gave actual
<br /> limits. Most chose to instead state what general policies should be enacted. Of the policies, 16%
<br /> stated that they want a more business friendly environment, such as what is in South Dakota, and
<br /> cited a need to be more competitive with neighboring states. Next, 13%cited wanting tax breaks,
<br /> `'' incentives, and benefits to small business (particularly in the beginning). 10%want less income tax,
<br /> 9%want less taxes altogether, 7%state that taxes to S-Corporations are unfair, and 5%want less
<br /> taxes in order to be able to expand their business.
<br /> Most important items for small business success
<br /> Organizations were asked to rank in order from 1-8 what they consider the most important
<br /> items for the success of their business. 1053 people responded. A healthy tax environment was
<br /> cited as the most important (21%),followed by close proximity to customers (17%), and a well-
<br /> educated workforce (16%). Next came a good lending environment (15%), low interest loans (12%),
<br /> a good transportation system (10%), grants (5%), and subsidies (4%).
<br /> Of the 722 who responded to the question of if MN has a healthy lending market, 411
<br /> stated it is poor, and 308 stated it is healthy. Breaking these numbers apart,47%state that the
<br /> environment is poor, 41%state it is healthy, 11%state it is poor and worsening, and 2%state it is
<br /> mediocre.
<br /> Lending Environment
<br /> Only 202 responded to the question regarding the difficulty to get a loan in Minnesota. 22%
<br /> stated that few banks are lending, are overly cautious, and have less money to give. 18%state that
<br /> few banks are lending now. 16%state that relationships with their banks have helped them, 14%
<br /> state that banks will only lend to the best, most stable organizations, and 8%state that SBA loans
<br /> are difficult to obtain. 141 Business owners suggested that Minnesota improve its lending market
<br /> by providing exclusive money to small businesses (20%), more realistic interest rates (20%), and no
<br /> government involvement(13%). Eleven percent cited being upset at the current recession, and
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