WalletHub releases list of 2023’s best & worst states to start a business.
Source: Adam McCann, Financial Writer — Wallet Hub
Starting a business is never easy. According to US Bureau of Labor Statistics data, about a fifth of all startups typically don’t survive past year one of operation, and nearly half never make it to their fifth anniversary. Staying afloat is difficult even under normal conditions, and even more so when dealing with a global pandemic, the highest inflation in decades and labor shortages.
Outside of the current difficult economic conditions, there are plenty of other reasons that startups fail, with a “bad location” among the most common. Choosing the right state for a business is therefore crucial to its success. A state that provides the ideal conditions for business creation — access to cash, skilled workers and affordable office space, for instance — can help new ventures not only take off but also thrive.
In this study, WalletHub compared the 50 states across 27 key indicators of startup success to determine the most fertile grounds in which to launch and grow an enterprise.
Main Findings
State
Rank
Utah
1
Florida
2
Texas
3
Colorado
4
Idaho
5
Georgia
6
Arizona
7
Nevada
8
Oklahoma
9
California
10
North Carolina
11
Montana
12
Maine
13
Kentucky
14
Washington
15
South Carolina
16
Tennessee
17
South Dakota
18
Massachusetts
19
Mississippi
20
Michigan
21
Hawaii
22
Indiana
23
Arkansas
24
Nebraska
25
Illinois
26
Iowa
27
Alabama
28
Louisiana
29
New Mexico
30
New York
31
Oregon
32
Vermont
33
Delaware
34
Ohio
35
Kansas
36
Wisconsin
37
Minnesota
38
New Hampshire
39
Missouri
40
Maryland
41
Virginia
42
North Dakota
43
Pennsylvania
44
Wyoming
45
Rhode Island
46
New Jersey
47
West Virginia
48
Connecticut
49
Alaska
50
Best States to Start a Business
Overall Rank
State
Total Score
Business Environment
Access to Resources
Business Costs
1
Utah
59.91
7
1
32
2
Florida
59.21
1
14
24
3
Texas
56.85
3
12
31
4
Colorado
56.14
4
7
35
5
Idaho
55.88
9
21
10
6
Georgia
55.37
5
26
19
7
Arizona
53.79
6
22
30
8
Nevada
53.54
12
11
26
9
Oklahoma
53.12
28
19
1
10
California
52.97
2
2
49
11
North Carolina
52.90
11
17
20
12
Montana
52.86
15
28
7
13
Maine
51.73
10
41
18
14
Kentucky
50.68
24
36
4
15
Washington
50.60
13
3
41
16
South Carolina
49.99
18
35
17
17
Tennessee
49.90
14
40
21
18
South Dakota
49.70
34
25
5
19
Massachusetts
49.42
17
4
44
20
Mississippi
49.37
43
30
2
21
Michigan
49.32
36
24
6
22
Hawaii
48.95
8
15
43
23
Indiana
47.75
29
42
11
24
Arkansas
47.65
25
49
9
25
Nebraska
46.92
32
39
16
26
Illinois
46.89
39
6
37
27
Iowa
46.84
31
27
23
28
Alabama
46.51
38
47
8
29
Louisiana
46.29
40
43
12
30
New Mexico
46.12
33
46
14
31
New York
46.10
19
5
47
32
Oregon
46.03
16
18
40
33
Vermont
45.79
35
23
29
34
Delaware
45.48
23
9
42
35
Ohio
45.21
45
37
13
36
Kansas
44.68
44
44
15
37
Wisconsin
44.43
46
31
22
38
Minnesota
44.17
27
32
33
39
New Hampshire
43.71
21
38
39
40
Missouri
43.69
48
34
25
41
Maryland
43.65
20
10
48
42
Virginia
43.38
26
29
38
43
North Dakota
43.34
37
45
27
44
Pennsylvania
42.84
42
20
34
45
Wyoming
42.66
41
48
28
46
Rhode Island
42.03
47
16
36
47
New Jersey
41.63
22
13
50
48
West Virginia
40.56
50
50
3
49
Connecticut
39.97
49
8
46
50
Alaska
39.44
30
33
45
Note: With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that state, where a rank of 1 represents the best conditions for that metric category.
Published by Utah Business Magazine
Utah ranks #1 as best state to start a business – Utah Business
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