Minnesota received a C+ in overall small business friendliness in 2015, according to an annual survey that asks small business owners across the nation to rate their state and city governments on a broad range of policy factors.
 
The annual survey was conducted by Thumbtack, a digital marketplace for connecting Americans with experienced local professionals, such as house remodelers, music lessons or other services. Nearly 18,000 small business owners responded to the survey, of which 500 were Minnesota respondents.
 
The state earned its lowest marks in the subcategories of licensing (a D) and in tax code (an F). Minnesota’s highest collective grades came in fields of ease of starting a business and training/networking programs (both an A-).
 
In a statement, Thumbtack’s chief economist Jon Lieber said, “Small business owners on Thumbtack have consistently told us that they welcome support from their governments but are frequently frustrated by unnecessary bureaucratic obstacles. Minneapolis was about average in our survey, and was really hurt by negative ratings of its regulatory environment.”
 
Results from the survey show significant difference from the previous year’s tally when the state earned a B in overall small business friendliness and was ranked 5^th in the nation. Additionally, each subcategory (which also includes ease of hiring, regulations, health/safety and more) averaged a full letter grade higher.
 
At the local level, the city of Minneapolis garnered a B- ranking for overall small business friendliness, placing it in 38th position among 95 of the nation’s major cities. Manchester, New Hampshire earned the top spot, while Hartford, Connecticut was deemed as having the worst climate for small business.
 
Texas received the best response from its small business owners as the Lone Star State took home top honors across the state divide. This was largely because it earned an A or A+ in every subcategory aside from Ease of Hiring (it was given a B). Minnesota ranked 25^th in the nation, while Rhode Island finished last.
 
In stark contrast to these findings, CNBC gave Minnesota the number one spot in its annual America’s Top State for Business report in June, due in part to its education, unemployment rate and technology assets. CNBC said at the time, “Never since we began rating the states in 2007 has a high-tax, high-wage, union-friendly state made it to the top of our rankings. But Minnesota does so well in so many other areas.”  Last month, Minnesota was also listed as the top state in Forbes’ Fastest-Growing States for Tech Jobs in 2015.