New businesses – including small businesses – are the backbone of the economy. They drive job growth, reduce poverty and strengthen GDP. Yet, the rate of new business formation in America has fallen by nearly half over 40+ years. It’s far more expensive to start a business in the U.S. than the U.K., China, Australia, Brazil, Canada, Sweden, India, South Korea and France. When high costs and red tape prevent Americans from launching businesses and pursuing the American Dream, the entire economy suffers.
Governors are focused on reducing barriers and opening doors so businesses can succeed. Supporting entrepreneurship is a key pillar of NGA Chair Oklahoma Governor Kevin Stitt’s Reigniting the American Dream initiative. Governor Stitt has invited his fellow governors to join him in signing on to a Governors Compact on Entrepreneurship to spur business-friendly policies and business growth throughout the nation.
From cutting red tape to funding investments to building infrastructure to unleashing affordable energy, here’s a snapshot of some of the business-friendly policies governors highlighted in their 2026 State of the State addresses.
“We are a nation of entrepreneurs and builders. Entrepreneurship is integral to the American Dream. As leaders, we need to ensure there are more opportunities for the next generation of founders to unlock innovation.”
Governor Kevin Stitt
Oklahoma“We’re investing in the economic engines of our state. Research and science, through the DRIVE Act. Defense technology. Quantum and AI partnerships. Climate tech. We’re supporting all of our entrepreneurs, who we depend on for our leadership in innovation. We’re supporting our small businesses. We cut 25 percent of our regulations to lower their costs and let them do what they do best. And this year we’ll cut more! We’re making sure everyone’s able to benefit. These aren’t just jobs in labs and offices. They are on construction sites, in classrooms, on factory floors. I filed energy affordability legislation to get us more power, get costs down and save you $13 billion. Our strategy on supply is “all of the above” – wind, solar, hydro, gas, nuclear – whatever it takes to power our homes and businesses and cut your costs.”
Governor Maura Healey
Massachusetts“All told, we visited dozens and dozens of businesses on my Open for Opportunity tour. An old pastor once told me, ‘Don’t wait for doors to open. Check the doors; see if they’re unlocked.’ Ultimately, economic development is about opening more doors of opportunity for our kids and grandkids. We want them to be able to pursue their careers right here in South Dakota. We will continue to check the doors, and we certainly should not lock the doors by limiting our economic potential… Community and business leaders are joining together to create new industrial development parks. These projects bring tremendous potential for strong growth in our communities. They are excellent examples of how the Future Fund can be used, strategically, to support forward-looking projects. Future Fund investments have moved South Dakota forward by turning bold vision into reality.”
Governor Larry Rhoden
South Dakota“I hear again and again how hard it is to do business here. Permitting is too slow. Licensing is a black box. Projects fail because they simply can’t afford the uncertainty or the wait. I promised to change that, with a ‘Save You Time and Money’ Agenda. And we’re already delivering. In my first days in office, I signed Executive Orders to start cutting red tape. I said I’d review burdensome regulations – so I paused all new and pending rules for 90 days. I promised to streamline permitting, including with a live dashboard where businesses can track their applications – we’re building it. I said I’d slash Business Registration Fees – this budget does that.”
Governor Mikie Sherrill
New Jersey “Our economic development strategy has focused on the fundamentals. That means developing business-ready sites that can accept large-scale projects and improving the infrastructure businesses need to invest, expand, and create jobs in the Mountain State. Last year, we focused on improving site selection and remediation, and put $74 million dollars towards water and sewer infrastructure projects across the state. Clean water and functional infrastructure lift up the standard of living and propel economic growth in our communities. We passed a comprehensive microgrids law, which is attracting deep interest from companies across the country. That law will become one of the single biggest economic development drivers in our history. In the last few months alone, we announced more than $4.5 billion dollars in new private sector investment and a projected 4,200 good-paying jobs.”
Governor Patrick Morrisey
West Virginia“We’re focused on targeted investments in our small businesses, our main streets, our downtown centers, our rural communities and our suburban office parks. Our focus on breaking down barriers [benefits] everyone who needs a license, permit, or certification from the Commonwealth to practice their craft. The Department of State oversees 29 licensing boards that confer 170 different licenses. When I took office, the processing time for many of these licenses was too damn slow. It took 25 days for a nurse to get their license three years ago. Today, it takes just six days. For pharmacists, the wait was 26 days – now it takes just a day. New barbers used to wait 12 days to get their license – now, they get that license the same day they apply for it.”
Governor Josh Shapiro
PennsylvaniaLearn more about the Governors Compact on Entrepreneurship and the Reigniting the American Dream initiative.
