Index score: 42.74

Michigan has no AMT or estate tax and relatively light health-insurance regulations. Although the state has a great business environment and education system, "if you look at the economic numbers, they're in the tank unfortunately," due to the auto industry's woes, says Kerrigan. Will Michigan's talent move into new industries, or into other states with more jobs, she asks. That's a big question for would-be entrepreneurs in Michigan.