With around 20% of new businesses failing within one year and inflation making entrepreneurship even more difficult, the personal-finance website WalletHub released its report on 2023’s Best & Worst States to Start a Business. To determine the most fertile grounds for planting and growing new ventures, WalletHub compared the 50 U.S. states across 27 key indicators of startup success. The data set ranges from financing accessibility to the percentage of residents who are fully vaccinated against COVID-19 to office-space affordability.
Best States to Start a Business
Worst States to Start a Business
|1. Utah||41. Maryland|
|2. Florida||42. Virginia|
|3. Texas||43. North Dakota|
|4. Colorado||44. Pennsylvania|
|5. Idaho||45. Wyoming|
|6. Georgia||46. Rhode Island|
|7. Arizona||47. New Jersey|
|8. Nevada||48. West Virginia|
|9. Oklahoma||49. Connecticut|
|10. California||50. Alaska|
Best vs. Worst
- Iowa has the cheapest average annual rent for office space, $12.08 per square foot, which is 2.2 times cheaper than in New York, the state with the most expensive at $26.66 per square foot.
- Mississippi has the lowest labor costs (median annual income), $46,511, which is 1.9 times lower than in Maryland, the state with the highest at $87,063.
- Massachusetts has the highest share of college-educated population, 44.50 percent, which is 2.1 times higher than in West Virginia, the state with the lowest at 21.30 percent.
- Wyoming has the most startups per 100,000 residents, 214.67, which is three times more than in West Virginia, the state with the fewest at 72.20.