Best And Worst States To Start A Business
When it comes to the costs, business environments and access to necessary resources, some states are more fertile grounds for starting a business. A credit score and personal finance company called WalletHub just released a report ranking states based on just those criteria.
WalletHub’s findings break down into a scoring of three categories: Business Environment, which includes areas like worker engagement, job and business growth and industry variety; Access to Resources, a category that encompasses access to financing, human capital and worker education; and Business Costs, including taxation, labor costs and rent. Each state was graded on accumulate scores of those criteria, with 100 as the best possible outcome. For a more detailed look at the methodology, check out WalletHub’s explanation here.
The best state for new businesses, according to the report, is Texas. The Lone Star State scored 64.4 overall, ranking in first place in the business environment category. In the access to resources category Texas ranked 12th, and 16th in business costs.
Utah took second place overall with 63.41 points. As a business environment the state ranked third, it came in first in access to resources and 33rd in business costs.
Georgia came in third overall, with 60.21 points, placing seventh as a business environment, 15th for resources and 17th for business costs.
At the low end of the ranking, we find Rhode Island, New Hampshire and, at number 50, Hawaii.
Looking at individual states by subcategory, North Dakota was found to have the highest average growth in the number of small businesses, followed by Utah and Florida. West Virginia ranked last in that category with the lowest average growth, followed by Vermont and New Mexico.
Labor costs were lowest in Mississippi, but that state came in 49th among states with the most-educated populace, with West Virginia taking the 50thposition. The most educated state was Massachusetts, followed by Colorado and Maryland.
In terms of office space, the least-costly state was found to be Iowa, followed by Maine and South Dakota. The most expensive states in that arena, according to the report, are New York, Alaska and California.