Wyoming: Entrepreneurs Like
Low-Tax Environment

What does a state that has historically relied upon its natural resources do to promote itself as a place to do business? If that state is Wyoming, it seeks to recruit the entrepreneur looking to escape the congestion, taxes and tight labor market of the big city.
        "The problem with Wyoming several years ago was that people here got complacent about the rest of our economy," says Den Costantino, director of business and industry for the Wyoming Business Council. "There hasn't been a real effort to diversify away from the minerals industry, but people realized that we had to do something."
        Others would seem to agree. The Small Business Survival Index 2000, published by the Small Business Survival Committee, ranks Wyoming third out of the 50 states as having one of the best environments for small businesses and entrepreneurship. Only South Dakota and Nevada rank higher.
        "Wyoming offers a solid foundation upon which entrepreneurship and investment may flourish," the report states, noting that Wyoming is one of only four states that doesn't impose personal income, capital gains and corporate income taxes. Furthermore, the state imposes no added estate taxes or electric utilities tax, as well as very low health insurance and gasoline taxes.
        But those factors alone aren't enough to lure industry to Wyoming. "The state has one four-year college, the University of Wyoming, and some 70 percent of our graduates leave the state every year because they can't find jobs here," says Costantino. "Those who stay do so because they want to live in Wyoming. We need to find jobs to keep our youth."
        Seeking to reverse its loss of young talent, the state last year conducted a study aimed at identifying those business markets that could be convinced to set up shop in Wyoming. While the state continues to draw most of its revenue from taxes levied on oil, gas and mining industries, the Wyoming Business Council believes that the state's tax advantages can become the ticket to economic diversification.
        "We hired Deloitte & Touche Fantus and went through a very extensive study of target markets," Costantino says. "That study identified five markets that would be a good fit for Wyoming: high-end, customized outdoor products and apparel; back-office services; printing and publishing; plastics manufacturing; and telecommunications suppliers and services."
        Moreover, the study identified geographical markets that could be ripe for business recruitment -- most notably Denver and Salt Lake City. Wyoming wasted little time in going to work.
        Last year, the town of Price, Utah, lost prime employer Sento Corp. to Wyoming. Despite repeated overtures from state and city officials to entice Sento to Price with financial incentives, the customer relations management company decided to take its 200 jobs to Green River, Wyo. The firm's new e-customer contact center is scheduled to open this spring.