A new report from financial advice publication Forbes Advisor has named Plano, Texas as the least risky city for small businesses to operate in.
The study, titled “The Most Risky Cities For Small Businesses In 2023,” analyzed and ranked 92 large cities throughout the U.S. based off of their suitability for small business owners to thrive in.
In compiling its rankings, Forbes Advisor gave cities risk scores based on 12 relevant categories, including living wage, state corporate tax, median household income, commercial real estate growth, property crime rates and more.
Plano received by far the lowest risk score, earning an astounding 0.00 out of 100, which was ahead of other low-risk cities such as Laredo, Texas (2.78); Raleigh, North Carolina (10.94); Durham, North Carolina (11.20); and Charlotte, North Carolina (14.54).
According to Forbes Advisor, Plano earned its incredibly miniscule score because of its “particularly low property crime (17 crimes per 1,000 residents), no state-level corporate tax and a higher-than-average median household income ($95,002 a year).”
In fact, based on the study’s results, it seems like the Lone Star State in general is an ideal place for small business owners to establish themselves in.
According to the study, eight Texas cities were among the 15 best areas for small businesses, including North Texas cities such as Fort Worth (sixth-best), Irving (eighth) and Garland (14th). Arlington and Dallas also cracked the top 25, placing 20th and 22nd respectively.
In contrast with Texas, eight different cities residing in California were named among the worst environments for small companies. San Bernardino was found to be the riskiest with a score of 100/100, followed by Long Beach (96.11), Riverside (92.37), Los Angeles (88.18) and Anaheim (87.51).
Other non-California cities that established themselves in the top 10 least desirable areas for independent businesses were Newark, New Jersey (fourth-worst, 91.34 out of 100); Washington, D.C. (fifth, 90.90); Chicago, Illinois (sixth, 89.65); St. Paul, Minnesota (eighth, 87.95); and Minneapolis, Minnesota (10th, 83.88).
To view the report in full, visit the Forbes Advisor website.