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10 Best And 10 Worst States For Starting A Business

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10 Best And 10 Worst States For Starting A Business

The U.S. economy is booming, and it’s an excellent environment for entrepreneurs to start a business. However, there are certain parts of the country that are great for launching a startup and others that can make life more difficult for new businesses.

Launching a successful business is already extremely difficult given that about four out of five startups ultimately fail. According to a new WalletHub study, “bad location” is one of the most common reasons new businesses fail.

The Ranking

WalletHub recently ranked each of the 50 U.S. states based on 26 metrics to gauge how friendly those states are to new businesses. The study found North Dakota has the highest growth of any state in terms of new small businesses and is tied for the top spot in terms of most accessible financing. On the other hand, Arizona is dead last when it comes to funding a venture.

When it comes to hiring employees, Mississippi has the lowest labor costs in the country, while Maryland has the highest. However, Mississippi has one of the least-educated populations of workers in the country, whereas Maryland, Colorado and Massachusetts have the most educated population of workers.

Alaska businesses have the longest average work week, while Utah has the shortest. The cheapest office space can be found in Iowa, but office space in New York, California and Alaska will cost a pretty penny.

Best And Worst Locations

Here’s a look at WalletHub’s 10 best states to start a business in 2019 along with their total score based on the 26 metrics:

  1. Texas (61.05)
  2. Utah (60.95)
  3. Georgia (58.12)
  4. North Dakota (57.68)
  5. Oklahoma (57.58)
  6. Florida (56.75)
  7. Arizona (54.39)
  8. California (54.30)
  9. Montana (53.71)
  10. Colorado (52.67)

On the contrary, here are the 10 least-favorable states in which to start a business:

  1. Rhode Island (35.29)
  2. New Jersey (36.42)
  3. New Hampshire (37.94)
  4. Hawaii (38.05)
  5. Connecticut (39.31)
  6. Pennsylvania (40.18)
  7. Delaware (40.66)
  8. Vermont (41.35)
  9. New York (42.25)
  10. West Virginia (43.36)

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Posted-In: WalletHubEconomics Small Business Media Best of Benzinga

 

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