The Small Business & Entrepreneurship Council has ranked the states on policy measures and costs. The most entrepreneur-friendly states are 1) TX, 2) NV, 3) FL, 4) SD, and 5) WY. The most unfriendly policy environments are 50) NJ, 49) California, 48) Hawaii, 47) NY, and 46) MN. The SBE Index also ranked states according to their tax systems. The best was TX; the worst was NJ.