3 Things You Should Know About Small Business: May 11

At least one Etsy investor approves of the legal change. "Etsy is a prime example of the Internet-based networks and marketplaces that are reshaping our economy and society," says Albert Wenger of Union Square Ventures and a long time Etsy investor. "We believe that the best long-term stewards of these networks will focus on value creation for all participants instead of solely on shareholders."

Etsy is looking to build on the already in-place initiatives it has, such as offering loaner bicycles to employees, hiring local small food businesses that incorporate in-season ingredients, donating office compost to a Brooklyn community farm and regulating office energy consumption, according to the company

The company also announced that it has secured $40 million in new funding from Index Ventures, who led the round, Accel Partners, Union Square Ventures, Hubert Burda Media and Glynn Partners.

"Our goal is to be the global platform for independent, creative businesses," says Etsy CEO Chad Dickerson. "Etsy has been driving a new, people-powered economy. With this funding, we're going to accelerate our expansion internationally and debut new services to become a one-stop shop for our sellers' businesses

3. Which states are the best to start a small business in? Texas continues to dominate the list of states which is most welcoming for small businesses. According to a poll by Thumbtack.com and Kauffman Foundation, Dallas-Ft. Worth, Austin and San Antonio ranked among the top four friendliest for small businesses and the state overall earned an A-plus, CNBC says.

States were graded on a number of factors, including ease of starting a business, hiring costs, government regulation and training programs, CNBC says. Idaho, Oklahoma and Utah also landed perfect grades for their friendliness toward small businesses, earning high marks for things like low tax rates.

Conversely, small business owners gave California, Hawaii, Vermont and Rhode Island an F, while New York, Massachusetts, Connecticut and Michigan each scored a D, CNBC says.

-- Written by Laurie Kulikowski in New York.

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