South Dakota, Nevada, and Wyoming are the most entrepreneur-friendly states, according to a new survey by the Small Business & Entrepreneurship Council, Inc.com reports.

The 11th annual “Small Business Survival Index” evaluated each state’s public policy climate for small businesses. Rankings were based on 29 major government-imposed or government-related costs, including state and local property taxes, personal income tax, number of health insurance mandates, crime rate, and electric utility costs.

“Governmental costs among the states will have an impact on where people live, work, and start up businesses,” Raymond Keating, the SBE Council’s chief economist and the author of the study, said in a statement.

Other states that ranked highly include Alabama (No. 4), Washington (No. 5), and Florida (No. 6).

The survey found that the District of Columbia has the least friendly policy environment for entrepreneurs. Other states deemed unfriendly to entrepreneurs include Rhode Island (No. 48), California (No. 49) and New Jersey (No. 50).

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