Washington has reasonable taxes and rules.

In interviews with us Washington entrepreneurs said that Washington is a business-friendly environment and has low taxes. Washington does not have income tax rates for either corporate or individual taxpayers. Instead the Washington Department of Revenue levy approximately 60 taxes and fees including sales and use (S&U), business and occupation (B&O) property and industry-specific taxes.

"The tax exemption for personal income taxation within the state is attractive from an employment point view," said Kristen David who is a business consultant and former trial lawyer. "In addition, the corporate tax structure is quite simple."

Washington makes it hard to access capital.

Capital is easily accessible within Washington. However there are many entrepreneurs who have a difficult time find investors in Washington as opposed to other hot tech areas like Massachusetts as well as San Francisco. Accelerators help connect small businesses to venture capitalists and angel investors, however acceptance for these programs isn't guaranteed and the investment opportunities aren't assured. Due to the state's competitive market investors will find a wide range of potential new businesses to take into consideration.

Puri stated, "We found out that the companies in the early stages here are not capital-sufficient." It's not surprisinggiven the wealth that's been amassed over many generations. Due to how wealth has been accumulated and how it's invested - low risk types of investments instead of risky areas like entrepreneurship.

Ames explained, "Here's some information we see: Overall lending volume to small businesses has been increasing." "But in actuality, for our majority of clients who are in the sub-$1 million range of revenue per year, lending has actually dropped substantially and has essentially remained flat. Smaller businesses have a harder time getting capital.
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