Starting a new business is difficult, but some states have been found to have better opportunities for future business owners. A new study has found that Texas is ideal for entrepreneurs..
When someone wants to start a business, he must choose the right state for the business. According to WalletHub, a state that provides the ideal conditions for starting a business, access to cash, skilled workers, and affordable office space can help new owners thrive despite the market.
January 17 WalletHub published its report on the best and worst states to start a business in 2023. The results showed that Texas is the third best place to start a business after Utah and Florida.
“According to the US Census Bureau, the top five states with population growth from 2021 to 2022 are Texas, Florida, North Carolina, Georgia and Arizona,” said Jae Hyun Kang, an assistant professor at the University of Oakland.
For the report, WalletHub compared 50 US states across 27 key startup success metrics. The data set ranges from the availability of funding to the percentage of residents fully vaccinated against COVID-19 to the availability of office space.
“Without a doubt, government tax and regulatory policies affect new business creation,” said Richard Reiffel, professor of financial practice at Washington University in St. Louis. “Lower tax rates, more favorable workplace regulations, reduced licensing and permit burdens are examples of business-friendly policies.”
Texas ranks first in key indicators:
- 4th place in average working week
- 10th in terms of average growth in the number of small businesses
- 10th place in terms of human capital
- 13th in the industry
- 14th in cost of living
- 30th for total labor costs
- 31st in percentage of residents fully vaccinated against COVID-19
To view the full report, click here.