Why can't Maryland be more entrepreneurial?
See the chart below from data compiled by LinkedIn via Social Beat. It shows the vital statistics of entrepreneurs, which Maryland needs more of. A recent column grew out of a conversation with DBED Secretary Chris Johansson and DLLR Secretary Alex Sanchez. They talked about the need to turn more of Maryland's prodigious research and development portfolio into commercial sales -- in other words, how to make Maryland more entrepreneurial.
Readers know that I believe Maryland's high personal income tax is an impediment to growth and entrepreneurs. (Small companies are frequently organized as partnerships, S corps or LLCs, which are taxed at the personal level.) But the map below gives contrary evidence, showing the most entrepreneurial states to be California and New York, which are hardly low-tax havens. Also look at the list of entrepreneurial schools -- UVA, but no Maryland. The University of Maryland has been doing a good job of trying to foster entrepreneurial spirit, but it needs to keep up the effort. 
Comments
Federal government. Federal government. federal government. Entrenpepnurialism takes the form private contracting in the state of Maryland. Just on a small level, seen too many tech industry personnel quit building businesses when they realize the type of salary/benefits they can get working in federal government and its off-shoots. Why invest in personnel who'll roll out to work for defense tech instead of slump through the bad times?
Also, place like California and New York have high taxes, but are home to strong financial sectors willing to make investment, which most small growing businesses, especially tech businesses, need for next level development. Fed gov swallows that up here.
Posted by: GMan50 | September 12, 2011 10:13 AM
I would suggest that, aside from oft-suggested issues of taxation, part of the problem is the increasing "company town" mentality of central Maryland, where the "company" is not just the Federal government in D.C., but state and local government as well. It's definitely too glib and jingoistic to accuse the entire region of thinking "government is the solition" to everything, but there definitely is a certain mindset I see even amongst the college-educated and upper class in that region that you don't see in rural "flyover country" or even the Delmarva Peninsula.
Posted by: Alexander D. Mitchell IV | September 12, 2011 11:09 AM