Indexing the Best and Worst States for Small Business

Starting a small business comes with many key decisions that can determine the venture’s success or failure. The team at Finfare decided to help entrepreneurs out and create a brilliant small business survival index. They collected data from every state and ranked them on how friendly they are to small businesses and how likely a startup is to succeed there.

Tax rates were one of the most significant aspects to examine. There are many types of tax that can affect a business. Finfare examined corporate tax rates, state unemployment tax, and minimum wage rates. These aren’t the only expenses to consider. Finfare calculated availability of affordable commercial space as well average electricity bills in each state. Finally, they looked at the survival rate of businesses after their first year. All of this helped them develop their small business map.

According to their index, here are the best states to start a small business in:

  1. Ohio 
  2. Nevada 
  3. Indiana 
  4. Arkansas 
  5. North Carolina 
  6. California 
  7. Oklahoma 
  8. Kentucky 
  9. Pennsylvania 
  10. Mississippi

With the good comes the bad. These are the states that are the least friendly to small businesses:

  1. District of Columbia 
  2. Alaska 
  3. New Jersey 
  4. Rhode Island 
  5. Connecticut 
  6. Minnesota 
  7. Maine 
  8. Vermont 
  9. Tennessee 
  10. Oregon

Many of these challenging states are expensive to start a business in or they don’t have an abundance of commercial real estate available. Of course, prospective business owners can do their own research and find that maybe a particular city in the states on the “worst” list will have better opportunities than other locations in the state.

Overall, the information here can tell business owners a lot about location and factors that will affect their small business. Information like this can be the difference between success and failure.

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