Imagine this: You’re a small business owner in Connecticut. You’re juggling payroll, compliance headaches, and the never-ending hunt for affordable health insurance. Meanwhile, your cousin in Texas is thriving. His state just slashed red tape, his team gets top-tier benefits without breaking the bank, and he’s even hiring more people. What’s his secret?
Turns out, it’s not luck—it’s strategy. States like Texas, Florida, North Carolina, and Utah are doubling down on supporting small businesses, and it’s paying off. Their secret sauce? A mix of smart policies, PEO partnerships, and a “we’ve got your back” mindset.
Connecticut has everything it needs to compete—educated workers, innovation centers, and a robust economy. But in order to keep companies from hopping to “easier” states, CT must take lessons. Let’s take apart what successful states are doing right—and how Connecticut can play catch-up.
First off, let’s acknowledge the good news. In 2024, Connecticut added 16,000 jobs jobs, bringing the count to about 1.716 million, beating pre-pandemic numbers. The unemployment level fell to 3.3% in January 2025, significantly below the national figure of 4%.
But it’s not all rainbows and sunshine. Forbes and WalletHub surveys ranked Connecticut at or near the bottom as a great state to do business in. WalletHub ranked us 49th, with much room for improvement.
Small businesses are hindered here by high operational expenses and regulatory complexity, among other things.
States Where Small Businesses Thrive
So, what are other states doing differently? Let’s look at some top performers:
One of the common denominators among these successful states is the successful implementation of Professional Employer Organizations (PEOs). If you don’t know, PEOs are companies that offer full-service HR solutions for small and medium-sized enterprises. They take care of everything from payroll and benefits to compliance and risk management.
Benefits of PEOs:
How Other States Leverage PEOs
In Texas and Florida, in particular, the incorporation of PEOs into the small business environment has been transformative. These entities bring scalable solutions that enable businesses to keep up with market needs at lightning speed without being encumbered by administrative burdens. This agility has played a crucial role in developing a thriving small business culture.
To make Connecticut more hospitable for small businesses, we might consider the following strategies:
1. Embrace PEOs: Encouraging the use of PEOs can alleviate the administrative burden on small businesses, allowing them to focus on growth and innovation.
2. Regulatory Reform: Simplifying the regulatory framework can make it easier for businesses to operate without unnecessary hurdles.
3. Tax Incentives: Offering tax breaks or incentives can reduce the financial strain on small businesses, making Connecticut a more attractive place to start and run a business.
4. Investment in Workforce Development: As highlighted in recent discussions, addressing the shortage of skilled labor in sectors like manufacturing and healthcare is crucial. Investing in training programs and redefining the narrative around skilled trades can meet demand and drive economic growth.
Conclusion: Connecticut Can Win—If It Plays Smart
Connecticut is rich in history and has much to boast of, but to secure a better future for our small businesses, we must learn and adapt from others. By adopting approaches such as the utilization of PEOs, streamlining regulation, providing tax incentives, and investing in workforce development, we can provide an atmosphere where small businesses survive not merely but thrive.
Let’s apply these lessons to our hearts and strive for a brighter, more business-friendly Connecticut. Until then? Partner with OEM America. We’ll assist you in stealing the best practices from leading states—without leaving CT.