Minnesota's business creation jumps 18%

  • Article by: ADAM BELZ , Star Tribune
  • Updated: January 8, 2013 - 8:59 PM

It's unclear how much of the entrepreneurialism reflects increased confidence vs. diminished job prospects.

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dtmonkeyboyJan. 8, 13 9:13 PM

We are constantly told people will not start companies or expand in MN because it is a high tax state...yet the math doesn't match that conclusion. Could it be that people are more concerned with quality of services than the actually tax rate.

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princess831Jan. 9, 13 3:51 AM

Since the article states that most of them are one person LLC's it looks as if it has more to do with the poor economy and lack of finding a job so that they can take advantage of the tax right offs. If most are one person LLC's they sure aren't creating additional jobs! It would be interesting to track how many of these by year end actually show a profit.

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comment229Jan. 9, 13 4:05 AM

If they started a business because they could not find work, why did it take them two years to figure it out? When my decent job ended and my health insurance right along with it, it sure didn't take me two years to find a job. Sure, I took a big hit in salary and benefits but there was no way I was going to sit at home and let the government send me a check and yes, I resent some of the other people that I know who did this and are still doing this. And when the unemployment benefits were proposed to be extended again, they just smiled. It IS a joke and the new welfare in this country. Wanna bet the unemployment rate goes down dramatically when members of congress finally end this loophole?

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endothermJan. 9, 13 4:50 AM

If a business fails because of state taxes (which take a small cut of the profits), then it does not have a sustainable business model. If the fundamentals of a business are strong, and if its customer base is reliable, then it will succeed no matter the taxes.

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Truckman182Jan. 9, 13 6:21 AM

It is by sheer will of the people wanting a better life that these numbers are so high. I know the state would like to pat themselves on the back and take credit. They shouldn't as we are still a very unfriendly state to small businesses.

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ahugginkissJan. 9, 13 8:21 AM

@ comment229 - "Sure, I took a big hit in salary and benefits but there was no way I was going to sit at home and let the government send me a check..." --- You realize that UI benefits are paid by employers, right? "Wanna bet the unemployment rate goes down dramatically when members of congress finally end this loophole?" --- Well, yeah, they'll be off the UI roles and not counted.

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franknjackJan. 9, 13 8:25 AM

Amazing lack of logic by some posters here. princess831--If someone is laid off and they start a one-person LLC, how is that not creating a job? comment229--Who said it took them 2 years to decide to do this? Truckman182--"[W]e are still a very unfriendly state to small businesses." Says who? Chambers of Commerce that are funded and monopolized by big corporations? Corproate taxes don't affect the vast majority of small businesses, and according to a recent Forbes report, MN is still in the upper quartile of business-friendly states.

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wildcountryJan. 9, 13 8:28 AM

Chalk another positive economic indicator up for a growing expanding economy. There are many reasons for this obviously, but the fact that you can borrow money to start a business cheaper than almost any point in history has alot to do with it.

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callmeronJan. 9, 13 8:43 AM

"Roughly half of the new businesses filed for in 2012 were limited liability companies. Most of those are likely one person, Guncheon said." LOL! Those people are trying to strike out on their own because they CANNOT FIND JOBS! Most of those "new businesses" will not make enough money to sustain the "entrepreneur" who will eventually go work for someone else when they can find a job--IF they can find a job in this Obama economy.

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mspshadowJan. 9, 13 8:50 AM

princess831: "Since the article states that most of them are one person LLC's it looks as if it has more to do with the poor economy and lack of finding a job"...not necessarily. In this time where employers have the upper hand, many are tired of devoting their lives to a company and getting little in return. I know several people who have quit their jobs and started their own business because they've become thoroughly disenchanted with corporate life.

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