MIAMI.- Entrepreneurship energizes economies, makes the market develop and grow, creating job opportunities. Although it is not an easy process and even less so, in the midst of difficult economic conditions, a good environment can be favorable for start a business and see it prosper.
The website WalletHub published a report in which it evaluated the country’s 50 states on 25 indicators of success in three categories: business environment, access to resources and business costs, in order to determine the best states to start a business.
According to this study, Utah is the most fertile state to start and grow new businesseswith a rating of 61.08 points, in which 100 represents the most favorable conditions for creating a business.
The “Beehive State” has the easiest time financing business loans and has the highest annual job growth in the country, at nearly 2.5%, according to WalletHub.
Additionally, business owners save money on employee benefits because the state has the lowest average health insurance premium per employee in the US.
Likewise, Utah is recognized as one of the best states in the Center for Digital Government Digital States Surveywhich measures how well states use technology to improve the efficiency of their businesses.
Second best state to undertake
About 20% of businesses fail in the first year and about half don’t make it to their fifth anniversary, according to the U.S. Bureau of Labor Statistics.
Starting a business in a prosperous area can make a difference. In this sense, Georgia ranks as the second best state to start a businesswith an evaluation of 60.22 points, and a high rate of “entrepreneurship”.
“There is great potential for growth, as business income grows faster in Georgia than in most other states,” notes the report.
The “Peach State” has the second highest proportion of companies in “strong groups”which refers to interconnected businesses that specialize in the same field and are in the top 25% of all regions for their specialization.
“If businesses fit into one of these groups, they will have an easier time obtaining the materials they need and can tap into an existing customer base,” WalletHub adds.
In addition, it has the ninth lowest corporate tax rate in the country, which represents a “relief” for owners.
Florida, with fertile ground for a business
Coupled with difficult economic conditions, there are many reasons why businesses fail. One of them is the bad location.
Choosing an appropriate state to start a business is essential to success, since it provides the right conditions to create a company, facilitates access to cash and has qualified workers and affordable office spaces.
Florida ranks third for the best conditions to help a business get “off the ground” and thrivewith a score of 60.17 and a “booming local economy,” according to WalletHub.
The “sunshine state” has a real GDP growth rate of more than 4%. “Given the prevalence of retirees in Florida, you might assume the workforce is shrinking, but the opposite is true. “In fact, Florida’s working-age population (16-64 years) is growing much faster than other states,” the report states.
He says that with new people entering the workforce, new business owners should have an easier time finding employees, despite labor shortages elsewhere.
The top 10 best states to start a business are:
- Idaho
- Nevada
- Arizona
- Colorado
- Texas
- North Carolina
- Tennessee
“Starting a business is a difficult and risky process, but Where you live can greatly influence on your chances of success,” highlights WalletHub analyst Cassandra Happe.
To do this, it is recommended that before establishing a business, you investigate whether the location is ideal for your customer base, that it has sufficient labor and availability of suppliers. In addition, you must evaluate whether it fits the needs when it comes to financing.
@ebritop22
Source: With information from WalletHub
