Nevada ranks low in business study; officials question metrics

Updated July 6, 2017 - 8:57 pm

A new WalletHub study ranks Nevada as the 35th best state in which to start a new business, but Nevada officials question inclusion of some of the metrics used in the study.

It’s a low score compared with the rankings the state has recently received. A January study from Gallup found Nevada leads the country in job creation, while a May report from The Innovation Group found Nevada leads the country in dynamism, or how well economies can adapt to change.

Nevada’s WalletHub score took a hit largely from scoring poorly across several of the study’s 21 metrics, including:

■ Average growth of business revenues.

■ Percentage of the population with a bachelor’s degree.

■ Access to financing.

■ Share of state GDP spent on tax incentives.

Some of these metric results are consistent with previous snapshots of the state. “(Las

Tax incentives?

Nevada’s worst metric, with a rank of 50, was for how much the state spends on tax incentives as a share of state GDP compared with other states.

Nevada spends 0.03 percent of its GDP on incentives, while the top ranking states in the country spend between 0.06 percent and 1.36 percent.

“Nevada issues fewer incentives for businesses than many other states,” WalletHub analyst Jill Gonzalez said. “Incentives were analyzed because they promote collaboration between state governments and startups.”

In fiscal year 2016, the Governor’s Office of Economic Development approved more than $95 million to 30 companies.

Michael Schaus, communications director with the Nevada Policy Research Institute, said it is strange to include tax incentives as a metric in this study.

“As we’ve seen time and time again, encouraging businesses to get in bed with politics is not an effective way to promote broad economic growth,” he said. “It often leads to favoritism, a waste of tax dollars and an increase in businesses lobbying for taxpayer handouts. A wiser approach would be to remove the barriers that currently exist for startups, such as the numerous business taxes and regulatory burdens.”

Steve Hill, the director of Nevada Governor’s Office of Economic Development, agreed that tax incentives are an odd metric to add to the mix.

“Incentives, for Nevada and for a lot of states, are only for companies that export,” Hill said. “If the study was trying to score states for all kinds of startups (which it was), then I would have to, frankly, disagree with the conclusion they reached.”

The metrics are too general, he said, and do not take into account the health of the local economy.

“WalletHub’s method of scoring where is a good place to open a business doesn’t have really much of anything to do with what businesses really need most, which is customers,” Hill said.

Growing pains

Nevada is generally friendlier to midsize and large businesses than it is to small businesses, in part because of a need for additional lenders.

“Access to financing could be improved in Nevada by the implementation of programs which offer small loan amounts with little or no collateral,” Gonzalez said. “That way, even low-income residents can find the funds to start their own business.”

The average small-business loan in Nevada is $1,662, compared with $38,281 in North Dakota, the WalletHub study found.

While Nevada has room to improve its access to capital, the state’s low ranking surprised Leanna Jenkins, director of the Nevada Women’s Business Center. WalletHub ranked Nevada as 49th in “financing accessibility.”

“Since 2014, Nevada Business Opportunity Fund has lent over $5,342,000 to start-up businesses and entrepreneurs who cannot qualify for traditional financing,” Jenkins said. “Entrepreneurs are gaining access to capital from not only alternative lenders like Nevada Business Opportunity Fund, they are also seeing a great number of traditional lenders easing up on their regulations.”

Previous reports have also pointed out Nevada’s room for improvement in resources for startups and small businesses.

Arnobio Morelix, senior research analyst at the Kauffman Foundation, told the Review-Journal in May that Las Vegas and Nevada as a whole can improve by strengthening the infrastructure and resources for startups.

“One thing that we can still make a lot of progress on in the community is company growth, helping companies scale after they start,” Morelix said, citing a possible need for additional financing and mentorship opportunities.

The WalletHub study ranked Nevada 49th in average growth of business revenues, with an average of 4.31 percent growth over the past five years. The study also found that half of new businesses survived for five years or more, ranking Nevada as 3oth in that metric.

Contact Nicole Raz at nraz@reviewjournal.com or 702-380-4512. Follow @JournalistNikki on Twitter.

ad-high_impact_4
Local
Underground home was built as Cold War-era hideaway
The underground house at 3970 Spencer Street is one of the valley’s most unusual homes built 26 feet underground in 1978 by Girard “Jerry” B. Henderson, who, planned to survive the end of the world there.
Lip Smacking Foodie Tours takes you where the locals go
Donald Contursi talks about Lip Smacking Foodie Tours, which offers walking tours of restaurants on and off Las Vegas Boulevard with food samples and tidbits of history about the places they visit.
Bump stock manufacturers under fire
The Justice Department said last month that it had started the process to amend federal firearms regulations to clarify that federal law defines bump stocks as machine guns.
Art Bell’s Top 10 Shows
A selection of radio host Art Bell’s most popular shows.
Longtime Las Vegas attorney John Momot dies at age 74
Criminal defense attorney John Momot, who represented mob figures and even played himself in the movie “Casino,” has died.
David Copperfield in court after man injured during magic trick
The attorney for a British man who is suing illusionist David Copperfield said his client suffered serious injuries after being called on stage during Copperfield's show at MGM Grand.
5 things connecting Las Vegas and Marilyn Monroe
1. Marilyn Monroe, known then as Norma Jeane, obtained her first divorce in Las Vegas at the age of 20 on September 13, 1946. 2. According to some biographers, Monroe lived at 604 S. 3rd Street for four months during the summer of 1946. The house has since been torn down and is now the site of a parking lot. 3. In 1954, Monroe almost married Joe DiMaggio in Las Vegas but the wedding was called off last minute. The wedding was to be held at the Hotel El Rancho Vegas which was located on the southwest corner of Sahara Avenue and Las Vegas Boulevard. 4. Las Vegas has at least one road dedicated to the star. Marilyn Monroe Avenue is located in east Las Vegas and intersects with Betty Davis Street and Cary Grant Court. 5. There are currently more than 20 Marilyn Monroe impersonators for hire in the Las Vegas Valley.
Sir Richard Branson announces purchase of Hard Rock Hotel
Sir Richard Branson, founder of the Virgin Group, has acquired the Hard Rock Hotel with partners and plans to turn it into a Virgin-branded property by the end of 2019.
3 Centennial High School students killed in Calif. crash (Full)
Three Centennial High School students were killed Thursday morning in Southern California when their vehicle was struck by a suspected drunken driver while they were enjoying their spring break, according to a family member of one of the victims.
Retail Restroom Sexual Assault Suspect
Las Vegas police are asking for help finding a man they said groped a woman in a south Las Vegas Valley restroom. (Las Vegas Metropolitan Police Department)
Calvary Christian Learning Academy, “There was no fair warning.”
Samantha O’Brien, whose three-year-old daughter attended the Calvary Christian Learning Academy daycare, found out Monday night when her daughter’s teacher called about the school closing.
Mojave Max at Springs Preserve
File footage of Mojave Max at Springs Preserve. (Springs Preserve)
Companies bet their futures on cryptocurrency
Two Las Vegas entrepreneurs talk about finding their niche in blockchain enabled technologies and digital currency.
Solar panels reduce energy bill for CCSD
Wilbur and Theresa Faiss Middle School is one of 42 CCSD schools with solar panel installations, saving approximately $514,000 per year in energy costs.
Red carpet at MGM for Dan Reynolds Believer screening
Kats on the red carpet for the VIP screening of "Believer," the documentary by Imagine Dragons frontman Dan Reynolds about how the Mormon Church treats its LGBTQ members.
Driver dies in single-vehicle crash
One person is dead after an early Wednesday morning crash in the northwest valley. The single-vehicle crash was called in about 1:35 a.m. on Jones Boulevard just north of Deer Springs Way, according to Metropolitan Police Department Sgt. Robert Stauffer. The driver, who was the only person inside the vehicle, died at the scene.
Uber Health to Improve Patient Ride-Hailing Services
Uber Health to Improve Patient Ride-Hailing Services On Thursday, Uber launched its Uber Health platform for healthcare providers. Medical facilities, rehab centers, clinics and hospitals can book rides for patients from a centralized dashboard – no app required. According to Techcrunch, Uber Health general manager Chris Weber noted some 3.6 million Americans miss appointments due to lack access to reliable transportation. Uber’s endeavors into health care trace back to 2014, when Uber first offered on-demand flu shots in large markets across the U.S. Since then there have been similar efforts throughout the world, from diabetes and thyroid testing in India, to subsidized rides for breast cancer screening in the U.S., to many more. Last summer, over 100 healthcare organizations joined the platform during a private beta. (Las Vegas Review-Journal)
Las Vegas firefighters put out blaze along Bonanza Road
Las Vegas firefighters put out a blaze that burned for about 15 minutes Feb. 20, 2018, along Bonanza Road, across from the Las Vegas Review-Journal. (Jeff Mosier/Las Vegas Review-Journal)
Business
Small businesses struggle to find qualified candidates
A 2018 survey found that over two-thirds of small businesses in Nevada find it somewhat to very difficult to recruit qualified candidates. Bailey Schulz/Las Vegas Review-Journal
Nevada secretary of state website offers little protection against fraudulent business filings
Property developer Andy Pham tells how control of his business was easily seized by another person using the secretary of state website.
Caesars may be going solo in its marijuana policy
Several Southern Nevada casino companies aren’t following Caesars Entertainment’s lead on marijuana testing.
How much is the Lucky Dragon worth?
Less than a year-and-a-half after it opened, the Lucky Dragon was in bankruptcy.
Gyms and discount stores take over empty retail spaces
Grocery stores used to draw people to shopping centers. But many large retail spaces have been vacant since 2008. Discount stores like goodwill and gyms like EOS Fitness are filling those empty spaces, and helping to draw shoppers back in. K.M. Cannon/Las Vegas Review-Journal
Funding source of Las Vegas stadium for the Raiders is sound, expert says
The stadium is funded in part by $750 million of room taxes, the biggest such tax subsidy ever for a professional sports stadium. Robert Lang, executive director of Brookings Mountain West and The Lincy Institute at UNLV, says that is a good use of public funds. (Richard Velotta/Las Vegas Review-Journal)
Las Vegas needs light rail, expert says
Robert Lang, executive director of Brookings Mountain West and the Lincy Institute said he is afraid of a "congestion mobility crisis." Las Vegas needs a light rail system, he said, to accommodate the city's growing number of attractions. (Richard Velotta/Las Vegas Review-Journal)
Three takeaways from Wynn Resorts' Earnings Call
Matt Maddox came out swinging in his first earnings conference call as Wynn Resorts chief executive officer, boasting of record Las Vegas quarterly revenues and applicants lining up for work.
Star Wars VR Comes to Las Vegas
Sneak peak at the new "Star Wars: Secrets of the Empire" VR experience at the Grand Canal Shoppes.
Elaine Wynn continues her fight to change Wynn Resorts board
Elaine Wynn, the largest shareholder of Wynn Resorts Ltd., is seeking to kick a friend of her ex-husband Steve Wynn off the company’s board of directors. (Todd Prince/Las Vegas Review-Journal)
Zillow is getting into house flipping in Las Vegas
Las Vegas Review-Journal real estate reporter Eli Segall says flipping houses has waned in popularity after the housing bubble burst.
Ellis Island Buys Mt. Charleston Lodge
Ellis Island, which operates a casino, brewery and hotel just off the Strip, purchased the Mt. Charleston Lodge in early April.
Casinos to be penalized for allowing drug-impaired customers to gamble
Nevada Gaming Commission Chairman Tony Alamo talks about an amendment making casinos subject to the same disciplinary standards of preventing people to gamble if impaired by drugs as they are for letting them play while intoxicated by alcohol.
Terrible Herbst to open large travel center in Southern Nevada
The 50,000-square-foot commercial travel center will include 96 fuel pumps and the third White Castle restaurant in Southern Nevada. Wade Tyler Millward reports.
Art Bell’s Top 10 Shows
A selection of radio host Art Bell’s most popular shows.
Hooters owner talks about room upgrades at his hotel-casino
George Ruff, founder and senior principal of Trinity Hotel Investors L.L.C., owner of Hooters Hotel and Casino in Las Vegas, talks about recent room upgrades at the hotel. K.M. Cannon/Las Vegas Review-Journal
Passengers Discuss Allegiant Air
Allegiant Air passengers voice their views on the airline at McCarran International Airport on April 16, 2018. (Bailey Schulz/Las Vegas Review-Journal)
Longtime Las Vegas attorney John Momot dies at age 74
Criminal defense attorney John Momot, who represented mob figures and even played himself in the movie “Casino,” has died.
Trump Slams Amazon for Not Paying Enough in Taxes
Trump Slams Amazon for Not Paying Enough in Taxes Trump tweeted his concerns about the company on Thursday. This isn't the first time Trump commented on the issues via Twitter. August 2017 December 2017 Amazon did hold back on paying state taxes in 1995, but the company has been routinely collecting state sales taxes since then. In 2016, the company's report from the Securities and Exchange Commission confirmed it paid $412 million in taxes.
David Copperfield in court after man injured during magic trick
The attorney for a British man who is suing illusionist David Copperfield said his client suffered serious injuries after being called on stage during Copperfield's show at MGM Grand.
eyecandylab CEO shows augmented reality during NAB
Robin Sho Moser, CEO and co-founder of eyecandylab gives an augmented reality demonstration at his booth during the National Association of Broadcaster Show at the Las Vegas Convention Center. K.M. Cannon/Las Vegas Review-Journal
Trends in access to capital for local black business owners
Denette Braud, owner of Braud’s Funnel Cake Cafe, talks about what owning her own business means to her.
Sir Richard Branson announces purchase of Hard Rock Hotel
Sir Richard Branson, founder of the Virgin Group, has acquired the Hard Rock Hotel with partners and plans to turn it into a Virgin-branded property by the end of 2019.
Calvary Christian Learning Academy, “There was no fair warning.”
Samantha O’Brien, whose three-year-old daughter attended the Calvary Christian Learning Academy daycare, found out Monday night when her daughter’s teacher called about the school closing.
Adobe unveils #HackTheBracket application for March Madness
Adobe unveiled their #HackTheBracket application at the Adobe Summit trade show at Sands Expo. People can use data from Adobe Analytics to make their bracket for March Madness. K.M. Cannon/Las Vegas Review-Journal
Adidas Signs Yankees' Star Aaron Judge
Adidas Signs New York Yankees Star Aaron Judge The slugger is set to don a new set of stripes this season after signing with the apparel company. Aaron Judge Terms of the deal were not disclosed. The deal includes branding on his batting gloves and wristbands. Judge, the AL's reigning Rookie of the Year, was previously under contract with Under Armour since 2014. Judge won the American League Rookie of the Year award last season after setting an MLB record for most homers in a rookie season (52).
Esports athletes are sponsored, too
Meet Red Bull-sponsored professional esports player Daryl S. Lewis, better known by his in-game name Snake Eyez. Nicole Raz Las Vegas Review-Journal.
Bettor Investments turned into a bad bet
Bettor Investments formerly operated a Nevada-licensed entity betting operation. The company promised “conservative growth, profits and stability for our investors.” Matt Stuart, who ran the fund, shut it down in late 2016 and never made good on an agreement with shareholders.
Starbucks Will Give You $10 Million for a Better Cup Design
Starbucks Will Give You $10 Million for a Better Cup Design Get your thinking caps on because the company is looking for a new cup that's easier to recycle. The $10 million grant challenge sees Starbucks partnering with investor group Closed Loop Partners for the project. According to CNN Money, Aside from the new cup design challenge, Starbucks stated it will test a cup with an inner lining made from plant fibers to prevent hot liquid from leaking. Will you join the challenge for #Bettercups?
Las Vegas bartenders who worked the Route 91 Harvest Music Festival question what they were paid
Reneé Black, left, and her husband Griffin Black talk to the Review-Journal at their home in Las Vegas, Tuesday, March 6, 2018. Reneé was a bartender at Route 91, and Griffin was a bar back. They were hired as independent contractors, but received forms months later indicating they were employees. They also were never paid their last day of tips. Nicole Raz/Las Vegas Review-Journal.
TOP NEWS
News Headlines
Events
Home Front Page Footer Listing
Circular
You May Like

You May Like