What are the best and worst US state to start a business? According to U.S. Bureau of Labor Statistics data, about a fifth of all startup businesses don’t survive past year one of operation, and nearly half never make it to their fifth anniversary.
There are a number of reasons why a business might fail, including: bad management, bad location, access to resources, and cost of doing business. A state that provides great conditions for business creation — access to cash, skilled workers, affordable office space, etc — can help new business ventures become more successful faster.
Key Indicators to Start a Business
Key indicators were reviewed to help determine which were the best and worst states to operate a business. Some of these indicators are:
Length of Work Week
Share of Committed Workers
Growth in Number of Small Businesses
Business Startups per Capita
Growth of Business Revenues
Five-Year Business Survival Rate
Access to Resources
Venture Investment Amount per Capita
Share of College-Educated Population
Working-Age Population Growth
Cost of Employer-Based Health Insurance
Cost of Living
Best and Worst Business Environment by State
4 North Dakota
43 New Mexico
45 New Hampshire
49 Rhode Island
50 West Virginia
Best and Worst Access to Resources by State
3 New York
9 New Jersey
48 New Hampshire
Best and Worst Business Costs by State
4 West Virginia
6 South Dakota
49 New York
50 New Jersey
Business is not a one-size fits all approach. The needs to operate a fast food chain are different than those for an advertising agency. Also, certain technologies have somewhat equalized things a bit, such as Internet, social media, global shipping, telecommuting, and free Wi-Fi. These rankings are just guidelines to help you make business decisions related to location.
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