Starting a new business is difficult, but some states were found to have better opportunities for future business owners. A new study found that Texas has the ideal environment for entrepreneurs.
When someone wants to start a business, they must choose the right state for a business. According to WalletHub, a state that provides the ideal conditions for business creation, access to cash, skilled workers and affordable office space, can help new owners thrive despite the market.
On Jan. 17, WalletHub released its report on 2023’s Best and Worst States to Start a Business. The findings showed that Texas is the third best place to start a business, behind Utah and Florida.
“According to the United States Census Bureau, the top five states in numeric growth from 2021 to 2022 are Texas, Florida, North Carolina, Georgia and Arizona,” said Jae Hyeung Kang, associate professor at Oakland University.
For the report, WalletHub compared 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.
“No doubt, state tax, and regulatory policies influence new business creation," said Richard Ryffel, professor of finance practice at Washington University in St. Louis. "Lower tax rates, more favorable workplace rules, reduced licensing and permitting burdens, are examples of policies that would be favorable to business creation."
Across the key indicators this is where Texas ranks:
- 4th for the average length of the workweek
- 10th for the average growth in the number of small businesses
- 10th in the availability of human capital
- 13th for industry variety
- 14th in the cost of general living
- 30th for general labor costs
- 31st in the percentage of residents who are fully vaccinated against COVID-19
To view the full report, click here.